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📜 SIDE QUEST · DEEP DIVE · ◆◆◆◆ · ~12 min

The Black–Scholes PDE, Derived

Derive the Black–Scholes PDE by building a riskless hedge — step by step.

"Hedge away the randomness and the equation appears."

replicating portfoliodelta hedgeItô on V(S,t)no-arbitragethe BS PDE
🚀 You're jumping ahead. This builds on The Black–Scholes–Merton Model — but play it now and you'll still earn full XP. If it feels steep, those make a gentler on-ramp.

A short lesson, then a quiz. ❤️×3 — a wrong answer costs a heart; finish with at least one left and the level is yours. Lose all three and you'll have to try again. Replay any time — XP and cleared levels are never lost.