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The Black-Scholes equation and its relation with semigroups of operatorsKeywords: Black-Scholes equation , Chapman-Kolmogorov equation , Semigroups of operators , Infinitesimal generator Abstract: This paper gives a connection between the theory of semigroups ofoperators (functional analysis) and mathematical finance through theBlack-Scholes equation. Besides using this theory obtain the solution ofthis equation via the infinitesimal generator of a group of evolution.
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