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

Abstract

: The objective of the work is essential 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 to construct explicit solutions highly nonlinear equations arising in the financial market. We have also shown a graphical behavior of the constructed solutions.