Full Length Research Paper
Abstract
A stability analysis of stochastic model of price change at the floor of a stock market is considered. Precise conditions are obtained which determine the equilibrium price and growth rate of the stock shares in a particular case. In general, stability in a numerical procedure for the Black-Schole’s partial differential equation is established. An illustrative example is provided.
Key words: Stability analysis, stochastic model, stock price changes, Black-Schole’s PDE, mathematics subject classification: 91B26, D91, 91B60.
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