Conservation laws for the Black-Scholes equation (Q1036760)

The authors begin by recalling the relationship between the Black-Scholes equation and the diffusion equation -- a result already known to Black and Scholes but presented here in the framework of Lie point symmetries. They analyze the Black-Scholes equation for potential symmetries by writing it in an obvious conserved form and obtain the solutions invariant under the potential symmetries. Thereafter conservation laws are obtained utilizing the point symmetries of the equation without recourse to Noether's Theorem.