Stochastic Calculus and the Black-Scholes-Merton Model: A Simplified Approach
Mathematical Finance
2026-05-11 v1
Abstract
This paper refutes the claim that the expected rate of return of the underlying asset plays no role in the Black-Scholes-Merton option pricing model.
Keywords
Cite
@article{arxiv.2605.07558,
title = {Stochastic Calculus and the Black-Scholes-Merton Model: A Simplified Approach},
author = {Kuo-Ping Chang},
journal= {arXiv preprint arXiv:2605.07558},
year = {2026}
}