Abstract
This paper introduces an efficient approach to solve the Black-Scholes Partial Differential Equation (BSPDE) with Barrier Option Constraints (BCOs). The approach of the Laplace–Adomian Decomposition Method (LADM), which is the combination of the Laplace Transform Method (LTM) and the Adomian Decomposition Method (ADM) is employed. The LTM is applied to the BSPDE, and the ADM is used for decomposing the solution of BSPDE into an infinite series. Moreover, the approximate solution obtained via LADM is expressed in the form of a convergent series with computed components. An illustrative example is presented, and the results are compared with the Analytical Value (AV). Hence, LADM is found to be effective and a powerful technique for obtaining an approximate solution of BSPDE with BCOs.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
