# In the derivation of the Black-Scholes PDE, using delta hedging, how is this linked to the risk neutral valuation? [closed]

I was reading this paper: http://www.columbia.edu/~mh2078/FoundationsFE/BlackScholes.pdf

I don't understand the paragraph here: "The most interesting feature of the Black-Scholes PDE (8) is that µ does not appear1 anywhere. Note that the Black-Scholes PDE would also hold if we had assumed that µ = r. However, if µ = r then investors would not demand a premium for holding the stock. Since this would generally only hold if investors were risk-neutral, this method of derivatives pricing came to be known as risk-neutral pricing."

It means that in the Black-Scholes framework (or more generally in a complete markets framework), since you can hedge all the risk away (by delta-hedging), you can price everything assuming that no risk premium is required, i.e. $$\mu = r$$.