EXPLICIT SOLUTION OF THE BLACK-SCHOLES EQUATION USING ADM

In this article, the Adomian approximate decomposition techique is applied to solve Black-Scholes equation. Based on the Adomian approximate decomposition method, a scheme is developed to obtain the approximate solution of the Black-Scholes equation. The solution of the studied model is calculated in the form of convergent series with easily computable components. Application of this method is easy, accurate approximation obtains for the given problem and it does not need high volume of calculations. It is shown that the Adomian decomposition method, with the help of matlab software, provides a straightforward and powerful mathematical tool for solving nonlinear problmes.