2026-07-072026-07-07http://salesiana.dossiersoluciones.com/handle/123456789/218824We study a certain one dimensional, degenerate parabolic partial differential equation with a boundary condition which arises in pricing of Asian options. Due to degeneracy of the partial differential operator and the non-smooth boundary condition, regularity of the generalized solution of such a problem remained unclear. We prove that the generalized solution of the problem is indeed a classical solution.9 pagesAnalysis of PDEs35B65; 35K20; 91B28text