  Families of exact solutions are found to a nonlinear modification of the
Black-Scholes equation. This risk-adjusted pricing methodology model (RAPM)
incorporates both transaction costs and the risk from a volatile portfolio.
Using the Lie group analysis we obtain the Lie algebra admitted by the RAPM
equation. It gives us the possibility to describe an optimal system of
subalgebras and correspondingly the set of invariant solutions to the model. In
this way we can describe the complete set of possible reductions of the
nonlinear RAPM model. Reductions are given in the form of different second
order ordinary differential equations. In all cases we provide solutions to
these equations in an exact or parametric form. We discuss the properties of
these reductions and the corresponding invariant solutions.
