European Call option pricing by the Adomian decomposition method

This article explores the Adomian decomposition method applied to the pricing of European call options in a risk-neutral world with an asset that pays and one that does not pay dividends. A brief introduction to existing methods of pricing, a numerical solution of the Black‐Scholes equation, a construction of a payoff function consistent with the method, and finally some numerical results for a hypothetical experiment are given.