Analytical Approximate Solutions of Stochastic Models Arising in Statistical Systems and Financial Markets

Homotopy Perturbation Method (HPM) is applied to solve stochastic models and in the simialr context Fokker-Planck equation for non-equilibrium statistical systems and Black-Scholes model for pricing stock options are tackled The analytical solutions are calculated in the form of convergent power series. The results reveal that HPM is very effective and convenient for stochastic models.