Numerical Solution of the Black-Scholes Partial Differential Equation for the Option Pricing Model Using the ADM-Kamal Method

Option contracts are financial derivatives developed as investment alternatives which are useful for minimizing the risk of loss. One of the most well-known models for calculating option prices is the Black-Scholes equation. This equation is a partial differential equation (PDE) of the order of natural and fractional numbers. In this paper, we have proposed a combined method of the Adomian Decomposition Method (ADM) and the Kamal Integral Transform (KIT) to solve the Black- Scholes Fractional Partial Differential Equation (FPDE) for the Option Pricing Model (OPM). The Black-Scholes FPDE approach solution can be used to build a buy and sell option pricing model. Numerical simulation results show that this method has an accurate performance in determining option pricing.