Pricing European Call Option and Sobolev Space Energy Estimate Theorem on Access Bank Share Prices

Abstract

This paper, examined Black-Scholes (BS) analytic approach for Call Option and Black-Scholes Partial Differential Equation (PDE) by means of Sobolev space Energy Estimate theorem to satisfactorily optimize good estimate of asset prices on the analysis of Access Bank share prices. The precise conditions which gave explicit prices of all forms of trading days disparities were completely obtained both in BS analytic formula and BS PDE through Sobolev space Energy Estimate theorem correspondingly. From the analysis of results shows the following: a little increase in the time of maturity expressively increases the value of assets ; increase in strike price likewise increases the value of assets ; the estimates of BS Call option prices outclassed Sobolev space energy estimates; the two averages of Call option prices and Sobolev space Energy estimate theorem to identified trends of share price of Access bank PLC for proper investment decisions; To this end, the surface-view graphical representations for both estimates were well discussed for the purpose of investment plans as it affects Access bank and capital market .

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