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Both classify as parabolic when considered as time-dependent PDE, so there's a mutual similarity to the heat equation and its solutions.As for Black-Scholes, it's a different form of differential equation than Schrodinger's, so the functions that are solutions to each are quite different.
am_Unition · 1300 days ago · link ·
Thanks for that, makes sense. I must be forgetting why the Schrodinger eq'n is non-dispersive, like why there isn't some first order spatial derivative, similar to the second term of this form of Black-Scholes. I think it's some assumption baked into a particular physical situation. Closed boundary conditions or something, right? It's been too long.