The amount spent on option contract is the main problem in option pricing. The problem
further gets complicated when there is need to project the future possible price of the
option. This is achievable if one can be able to correctly determine the probability of the
price increasing, decreasing or remaining constant. Any investor wishing to invest in the
stock exchange would wish to make a pro t thus the need for good formulas that give
very close solutions to the market prices.
This project aims at using nite di erence method to price options using partial di erential