I'm working on the Black-Scholes equation, but I'm pretty new to financial modeling. Right now, I am trying to understand the Black-Scholes PDE. I understand that the Black-Scholes equation is given by
\begin{equation*}
\frac{\partial C}{\partial t} + \frac{1}{2}\sigma^2 S^2\frac{\partial^2 C}{\partial S^2} + rS \frac{\partial C}{\partial S} - rC = 0
\end{equation*}
with initial condition
\begin{equation*}
C(S,T) = \max (S-K, 0)
\end{equation*}
and boundary conditions
\begin{equation*}
C(0,t) = 0 \hspace{35pt} C(S,t) \rightarrow S \text{ as } S \rightarrow \infty
\end{equation*}
and $C(S,t)$ is defined over $0 < S < \infty$, $0 \leq t \leq T$.

This can be further transformed and simplified into a heat diffusion equation [as described here][1].

\begin{equation*}
\frac{\partial u}{\partial \tau} = \frac{\partial^2 u}{\partial x^2} + (k-1)\frac{\partial u}{\partial x} - ku
\end{equation*}

The [following matlab code][2] implements this. My question is, what exactly is the form of the boundary conditions for the the transformed equation? I can't seem to understand the parameters (related to the boundary conditions) given in the Matlab code. Any related literature would be highly appreciated.

[1]: http://www.ms.uky.edu/~rwalker/research/black-scholes.pdf
[2]: http://www.math.uwaterloo.ca/~hwolkowi//henry/reports/talks.d/t09talks.d/09waterloomatlab.d/mfileshigham.d/bs.m