The Ohio State University.
LaPlace Transforms as Present Value Rules: A Note
Article first published online: 30 APR 2012
1986 The American Finance Association
The Journal of Finance
Volume 41, Issue 1, pages 243–247, March 1986
How to Cite
BUSER, S. A. (1986), LaPlace Transforms as Present Value Rules: A Note. The Journal of Finance, 41: 243–247. doi: 10.1111/j.1540-6261.1986.tb04502.x
- Issue published online: 30 APR 2012
- Article first published online: 30 APR 2012
- Cited By
The present value equation in finance is shown to be equivalent to the Laplace transformation in mathematics. Based on this observation, the list of known analytic solutions for the present value problem is increased from a handful to more than one hundred. General properties of the Laplace transform are examined as well in light of the newly discovered significance for finance.