This paper presents a numerical solution of the temporal-fractional Black–Scholes equation governing European options (TFBSE-EO) in the finite domain so that the temporal derivative is the Caputo fractional derivative. For this goal, we firstly use linear interpolation with the $$(2-\alpha)$$ ( 2 - α ) -order in time. Then, the Chebyshev collocation method based on the second kind is used for approximating the spatial derivative terms. Applying the energy method, we prove unconditional stability and convergence order. The precision and efficiency of the presented scheme are illustrated in two examples.

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In this paper, we present numerous refinements of the Young inequality by the Kantorovich constant. We use these improved inequalities to establish corresponding operator inequalities on a Hilbert space and some new inequalities involving the Hilbert-Schmidt norm of matrices. We also give some refinements of the following Heron type inequality for unitarily invariant norm |||⋅||| and A, B, X ∈ Mn(ℂ): $$\begin{array}{} \begin{split} \displaystyle \Big|\Big|\Big|\frac{A^\nu XB^{1-\nu}+A^{1-\nu}XB^\nu}{2}\Big|\Big|\Big| \leq &(4r_0-1)|||A^{\frac{1}{2}}XB^{\frac{1}{2}}||| \\ &+2(1-2r_0)\Big|\Big|\Big|(1-\alpha)A^{\frac{1}{2}}XB^{\frac{1}{2}} +\alpha\Big(\frac{AX+XB}{2}\Big)\Big|\Big|\Big|, \end{split} \end{array}$$ where $\begin{array}{} \displaystyle \frac{1}{4}\leq \nu \leq \frac{3}{4}, \alpha \in [\frac{1}{2},\infty ) \end{array}$ and r0 = min{ν, 1 – ν}.

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