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Stochastic Calculus and the Black-Scholes-Merton Model: A Simplified Approach

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  • Kuo-Ping Chang

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.

Suggested Citation

  • Kuo-Ping Chang, 2026. "Stochastic Calculus and the Black-Scholes-Merton Model: A Simplified Approach," Papers 2605.07558, arXiv.org.
    • Handle: RePEc:arx:papers:2605.07558
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    File URL: https://arxiv.org/pdf/2605.07558
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    References listed on IDEAS

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    1. Kuo-Ping Chang, 2023. "Corporate Finance: A Systematic Approach," Springer Texts in Business and Economics, Springer, number 978-981-19-9119-6, December.
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