l1.16 The Algebra of the Differential Equation Il S t=r-f +10f s =rf Again, this is the black-Scholes partial differential equation Options, Futures, and Other Derivatives, 4th edition@ 2000 by John C. Hull Tang Yincai, C 2003, Shanghai Normal University11.16 Options, Futures, and Other Derivatives, 4th edition © 2000 by John C. Hull Tang Yincai, © 2003, Shanghai Normal University The Algebra of the Differential Equation II • Again, this is the Black-Scholes partial differential equation S rf S f S S f r t f S S f S rf r S f t f S S f S r f S f t f S t S f S t r f S f t f =   +   +     = −   +            = + −        +            = − +        −   − 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 1 2 1 2 1 2 1      