<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>The nonlinear differential equation option pricing formula is invaluable in financial derivatives investment risk assessment. This article applies the theory of nonlinear differential equations to deal with financial risks in commodity and currency markets. Through this condition, we obtain the fair price process of contingent rights under the classic Black-Scholes model and the price process of the optimal growth investment strategy. The results show that the risk measurement under stable distribution is suitable for investors to manage risk.</p>
</abstract>

The nonlinear differential equation option pricing formula is invaluable in financial derivatives investment risk assessment. This article applies the theory of nonlinear differential equations to deal with financial risks in commodity and currency markets. Through this condition, we obtain the fair price process of contingent rights under the classic Black-Scholes model and the price process of the optimal growth investment strategy. The results show that the risk measurement under stable distribution is suitable for investors to manage risk.

Nonlinear Differential Equations in Preventing Financial Risks

Finance Department of Jinzhou Medical University

Audit Office of Jinzhou Medical University

Applied Mathematics and Nonlinear Sciences

This work is licensed under the Creative Commons Attribution 4.0 International License.

{"article-title":"Nonlinear Differential Equations in Preventing Financial Risks"}

The nonlinear differential equation option pricing formula is invaluable in financial derivatives investment risk assessment. This article applies the theory...

Nonlinear Differential Equations in Preventing Financial Risks

Data publikacji: 15 lip 2022

Zakres stron: 757 - 766

Otrzymano: 16 lut 2022

Przyjęty: 18 kwi 2022

DOI: https://doi.org/10.2478/amns.2022.2.0063

Słowa kluczowe
Nonlinear differential equations, Financial risks, Partial differential equations, Financial derivatives

© 2023 Xiangli Meng et al., published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

Nonlinear Differential Equations in Preventing Financial Risks

Data publikacji: 15 lip 2022

Zakres stron: 757 - 766

Otrzymano: 16 lut 2022

Przyjęty: 18 kwi 2022

DOI: https://doi.org/10.2478/amns.2022.2.0063

Słowa kluczoweNonlinear differential equations, Financial risks, Partial differential equations, Financial derivatives

© 2023 Xiangli Meng et al., published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

Słowa kluczowe
Nonlinear differential equations, Financial risks, Partial differential equations, Financial derivatives