The On Study Of Generalized Nonlinear Black Scholes Equation By Reduced Differential Transform Algorithm

Abstract

The objective of the work is essentially to construct an approximate solution of the generalization of nonlinear Black-Scholes partial differential equation, modeling price slippage impact of transaction coast option, through promising computational algorithm called Reduced Differential Transform Algorithm. This work also shows that the algorithm can be efficiently employed construct explicit solutions highly nonlinear equations arising in financial market. We have also shown a graphical behavior of the constructed solutions