A Numerical Discussion for the European Put Option Model

The Black-Scholes equations have been increasingly popular over the last three decades since they provide more practical information for optional behaviours. Therefore, effective methods needed to analyze these models. This study will focus mainly on investigating behavior of equation European put option pricing model. To achieve this, numerical solutions model are produced by combined methods. Spatial discretization is performed using a fourth-order finite difference (FD4) scheme that allows highly accurate approximation solutions. For time discretization, techniques proposed: strong-stability preserving Runge Kutta (SSPRK3), (RK4) and one-step method. results compared with available literature exact solution.