# How to calculate the price of an asset using Black-Scholes equation?

I'm trying to solve this problem given:

The dividend yield for asset 1 (asset 2) is 0.05 (0.03), and it is also given the time zero stock prices, and both assets' Black-Scholes equation.

I need to find the time zero price of an asset which pays:

$$[max(S_{3}^{1}-S_{3}^{2},0)]$$ at T = 3.

Just wanted to get a hint on how to approach the problem?

Thanks!

Basically what you are after is an exchange option on the two assets, i.e., a zero-strike call option on the price difference between asset1 and asset2. Having the equations of motion for both asset prices, you are in a position to work out:
i) the forward prices for both assets at $$T=3$$;
ii) both assets' volatilities $$\sigma_1$$ and $$\sigma_2$$; AND
iii) the correlation coefficient $$\rho_{1,2}$$.