Finite-Difference Black-Scholes
0:00 / 0:00
Remixed 0 times
Created by Raghuvendra Chauhan with Mathify.dev
The animation walks through the explicit finite-difference solution of the Black-Scholes PDE for a European put, showing the grid setup, the backward time-marching scheme, and how instability causes the numerical solution to blow up at large stock prices.