English

Pseudo Hermitian formulation of Black-Scholes equation

General Finance 2016-11-25 v1

Abstract

We show that the non Hermitian Black-Scholes Hamiltonian and its various generalizations are eta-pseudo Hermitian. The metric operator eta is explicitly constructed for this class of Hamitonians. It is also shown that the effective Black-Scholes Hamiltonian and its partner form a pseudo supersymmetric system.

Keywords

Cite

@article{arxiv.1112.3217,
  title  = {Pseudo Hermitian formulation of Black-Scholes equation},
  author = {T. K. Jana and P. Roy},
  journal= {arXiv preprint arXiv:1112.3217},
  year   = {2016}
}