A First Course in Differential Equations with Modeling Applications (MindTap Course List)
11th Edition
ISBN: 9781305965720
Author: Dennis G. Zill
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Textbook Question
Chapter 1.2, Problem 34E
- (a) Use the family of solutions in part (a) of Problem 33 to find an implicit solution of the initial-value problem y dy/dx = 3x, y(2) = ‒4. Then, by hand, sketch the graph of the explicit solution of this problem and give its interval I of definition.
- (b) Are there any explicit solutions of y dy/dx = 3x that pass through the origin?
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
Calculus lll
May I please have the blank lines completed, and final statement defined as a result?
Thank you for the support!
For each month of the year, Taylor collected the average high temperatures in Jackson, Mississippi. He used the data to create the histogram shown. Which set of data did he use to create the histogram?
A
55, 60, 64, 72, 73, 75, 77, 81, 83, 91, 91, 92\ 55,\ 60,\ 64,\ 72,\ 73,\ 75,\ 77,\ 81,\ 83,\ 91,\ 91,\ 92 55, 60, 64, 72, 73, 75, 77, 81, 83, 91, 91, 92
B
55, 57, 60, 65, 70, 71, 78, 79, 85, 86, 88, 91\ 55,\ 57,\ 60,\ 65,\ 70,\ 71,\ 78,\ 79,\ 85,\ 86,\ 88,\ 91 55, 57, 60, 65, 70, 71, 78, 79, 85, 86, 88, 91
C
55, 60, 63, 64, 65, 71, 83, 87, 88, 88, 89, 93\ 55,\ 60,\ 63,\ 64,\ 65,\ 71,\ 83,\ 87,\ 88,\ 88,\ 89,\ 93 55, 60, 63, 64, 65, 71, 83, 87, 88, 88, 89, 93
D
55, 58, 60, 66, 68, 75, 77, 82, 86, 89, 91, 91\ 55,\ 58,\ 60,\ 66,\ 68,\ 75,\ 77,\ 82,\ 86,\ 89,\ 91,\ 91 55, 58, 60, 66, 68, 75, 77, 82, 86, 89, 91, 91
In this problem, we consider a Brownian motion (W+) t≥0. We consider a stock model (St)t>0
given (under the measure P) by
d.St 0.03 St dt + 0.2 St dwt,
with So 2. We assume that the interest rate is r = 0.06. The purpose of this problem is to
price an option on this stock (which we name cubic put). This option is European-type, with
maturity 3 months (i.e. T = 0.25 years), and payoff given by
F = (8-5)+
(a) Write the Stochastic Differential Equation satisfied by (St) under the risk-neutral measure
Q. (You don't need to prove it, simply give the answer.)
(b) Give the price of a regular European put on (St) with maturity 3 months and strike K = 2.
(c) Let X =
S. Find the Stochastic Differential Equation satisfied by the process (Xt)
under the measure Q.
(d) Find an explicit expression for X₁ = S3 under measure Q.
(e) Using the results above, find the price of the cubic put option mentioned above.
(f) Is the price in (e) the same as in question (b)? (Explain why.)
Chapter 1 Solutions
A First Course in Differential Equations with Modeling Applications (MindTap Course List)
Ch. 1.1 - In Problems 18 state the order of the given...Ch. 1.1 - In Problems 18 state the order of the given...Ch. 1.1 - In Problems 18 state the order of the given...Ch. 1.1 - In Problems 18 state the order of the given...Ch. 1.1 - In Problems 18 state the order of the given...Ch. 1.1 - In Problems 18 state the order of the given...Ch. 1.1 - In Problems 18 state the order of the given...Ch. 1.1 - In Problems 18 state the order of the given...Ch. 1.1 - In Problems 9 and 10 determine whether the given...Ch. 1.1 - In Problems 9 and 10 determine whether the given...
Ch. 1.1 - In Problems 1114 verify that the indicated...Ch. 1.1 - In Problems 1114 verify that the indicated...Ch. 1.1 - In Problems 1114 verify that the indicated...Ch. 1.1 - In Problems 1114 verify that the indicated...Ch. 1.1 - In Problems 1518 verify that the indicated...Ch. 1.1 - In Problems 1518 verify that the indicated...Ch. 1.1 - In Problems 1518 verify that the indicated...Ch. 1.1 - In Problems 1518 verify that the indicated...Ch. 1.1 - In Problems 19 and 20 verify that the indicated...Ch. 1.1 - In Problems 19 and 20 verify that the indicated...Ch. 1.1 - In Problems 2124 verify that the indicated family...Ch. 1.1 - In Problems 2124 verify that the indicated family...Ch. 1.1 - In Problems 2124 verify that the indicated family...Ch. 1.1 - In Problems 2124 verify that the indicated family...Ch. 1.1 - In Problems 2528 use (12) to verify that the...Ch. 1.1 - In Problems 2528 use (12) to verify that the...Ch. 1.1 - In Problems 2528 use (12) to verify that the...Ch. 1.1 - In Problems 2528 use (12) to verify that the...Ch. 1.1 - Verify that the piecewise-defined function...Ch. 1.1 - In Example 7 we saw that y=1(x)=25x2 and...Ch. 1.1 - In Problems 31-34 find values of m so that the...Ch. 1.1 - In Problems 31-34 find values of m so that the...Ch. 1.1 - In Problems 31-34 find values of m so that the...Ch. 1.1 - In Problems 31-34 find values of m so that the...Ch. 1.1 - In Problems 35 and 36 find values of m so that the...Ch. 1.1 - In Problems 35 and 36 find values of m so that the...Ch. 1.1 - In Problems 3740 use the concept that y = c, x ...Ch. 1.1 - In Problems 3740 use the concept that y = c, x ...Ch. 1.1 - In Problems 3740 use the concept that y = c, x ...Ch. 1.1 - In Problems 3740 use the concept that y = c, x ...Ch. 1.1 - Prob. 41ECh. 1.1 - In Problems 41 and 42 verify that the indicated...Ch. 1.1 - Prob. 43ECh. 1.1 - Make up a differential equation that you feel...Ch. 1.1 - What function do you know from calculus is such...Ch. 1.1 - What function (or functions) do you know from...Ch. 1.1 - The function y = sin x is an explicit solution of...Ch. 1.1 - Discuss why it makes intuitive sense to presume...Ch. 1.1 - In Problems 49 and 50 the given figure represents...Ch. 1.1 - In Problems 49 and 50 the given figure represents...Ch. 1.1 - The graphs of members of the one-parameter family...Ch. 1.1 - Prob. 52ECh. 1.1 - In Example 7 the largest interval I over which the...Ch. 1.1 - In Problem 21 a one-parameter family of solutions...Ch. 1.1 - Discuss, and illustrate with examples, how to...Ch. 1.1 - The differential equation x(y)2 4y 12x3 = 0 has...Ch. 1.1 - Prob. 57ECh. 1.1 - Find a linear second-order differential equation...Ch. 1.1 - Prob. 59ECh. 1.1 - Prob. 60ECh. 1.1 - Consider the differential equation dy/dx = y(a ...Ch. 1.1 - Consider the differential equation y = y2 + 4. (a)...Ch. 1.2 - In Problems 1 and 2, y = 1/(1 + c1ex) is a...Ch. 1.2 - In Problems 1 and 2, y = 1/(1 + c1ex) is a...Ch. 1.2 - In Problems 36, y = 1/(x2 + c) is a one-parameter...Ch. 1.2 - In Problems 36, y = 1/(x2 + c) is a one-parameter...Ch. 1.2 - In Problems 36, y = 1/(x2 + c) is a one-parameter...Ch. 1.2 - In Problems 36, y = 1/(x2 + c) is a one-parameter...Ch. 1.2 - In Problems 710, x = c1 cos t + c2 sin t is a...Ch. 1.2 - Prob. 8ECh. 1.2 - In Problems 710, x = c1 cos t + c2 sin t is a...Ch. 1.2 - In Problems 710, x = c1 cos t + c2 sin t is a...Ch. 1.2 - In Problems 1114, y = c1ex + c2ex is a...Ch. 1.2 - In Problems 1114, y = c1ex + c2ex is a...Ch. 1.2 - In Problems 1114, y = c1ex + c2ex is a...Ch. 1.2 - In Problems 1114, y = c1ex + c2ex is a...Ch. 1.2 - In Problems 15 and 16 determine by inspection at...Ch. 1.2 - In Problems 15 and 16 determine by inspection at...Ch. 1.2 - In Problems 1724 determine a region of the...Ch. 1.2 - In Problems 1724 determine a region of the...Ch. 1.2 - In Problems 1724 determine a region of the...Ch. 1.2 - In Problems 1724 determine a region of the...Ch. 1.2 - In Problems 1724 determine a region of the...Ch. 1.2 - In Problems 1724 determine a region of the...Ch. 1.2 - In Problems 1724 determine a region of the...Ch. 1.2 - In Problems 1724 determine a region of the...Ch. 1.2 - In Problems 2528 determine whether Theorem 1.2.1...Ch. 1.2 - In Problems 2528 determine whether Theorem 1.2.1...Ch. 1.2 - In Problems 2528 determine whether Theorem 1.2.1...Ch. 1.2 - In Problems 2528 determine whether Theorem 1.2.1...Ch. 1.2 - (a) By inspection find a one-parameter family of...Ch. 1.2 - (a) Verify that y = tan (x + c) is a one-parameter...Ch. 1.2 - (a) Verify that y = 1 /(x + c) is a one-parameter...Ch. 1.2 - (a) Show that a solution from the family in part...Ch. 1.2 - (a) Verify that 3x2 y2 = c is a one-parameter...Ch. 1.2 - (a) Use the family of solutions in part (a) of...Ch. 1.2 - In Problems 3538 the graph of a member of a family...Ch. 1.2 - In Problems 3538 the graph of a member of a family...Ch. 1.2 - In Problems 3538 the graph of a member of a family...Ch. 1.2 - In Problems 3538 the graph of a member of a family...Ch. 1.2 - In Problems 3944, y = c1 cos 2x + c2 sin 2x is a...Ch. 1.2 - In Problems 3944, y = c1 cos 2x + c2 sin 2x is a...Ch. 1.2 - In Problems 3944, y = c1 cos 2x + c2 sin 2x is a...Ch. 1.2 - In Problems 3944, y = c1 cos 2x + c2 sin 2x is a...Ch. 1.2 - In Problems 3944, y = c1 cos 2x + c2 sin 2x is a...Ch. 1.2 - In Problems 3944, y = c1 cos 2x + c2 sin 2x is a...Ch. 1.2 - Find a function whose graph at each point (x, y)...Ch. 1.2 - Prob. 46ECh. 1.2 - Consider the initial-value problem y = x 2y, y(0)...Ch. 1.2 - Show that x=0y1t3+1dt is an implicit solution of...Ch. 1.2 - Prob. 49ECh. 1.2 - Suppose that the first-order differential equation...Ch. 1.2 - The functions y(x)=116x4, x and...Ch. 1.3 - Under the same assumptions that underlie the model...Ch. 1.3 - The population model given in (1) fails to take...Ch. 1.3 - Using the concept of net rate introduced in...Ch. 1.3 - Modify the model in Problem 3 for net rate at...Ch. 1.3 - A cup of coffee cools according to Newtons law of...Ch. 1.3 - The ambient temperature Tm in (3) could be a...Ch. 1.3 - Suppose a student carrying a flu virus returns to...Ch. 1.3 - At a time denoted as t = 0 a technological...Ch. 1.3 - Suppose that a large mixing tank initially holds...Ch. 1.3 - Suppose that a large mixing tank initially holds...Ch. 1.3 - What is the differential equation in Problem 10,...Ch. 1.3 - Generalize the model given in equation (8) of this...Ch. 1.3 - Suppose water is leaking from a tank through a...Ch. 1.3 - The right-circular conical tank shown in Figure...Ch. 1.3 - A series circuit contains a resistor and an...Ch. 1.3 - A series circuit contains a resistor and a...Ch. 1.3 - For high-speed motion through the airsuch as the...Ch. 1.3 - A cylindrical barrel s feet in diameter of weight...Ch. 1.3 - After a mass m is attached to a spring, it...Ch. 1.3 - In Problem 19, what is a differential equation for...Ch. 1.3 - A small single-stage rocket is launched vertically...Ch. 1.3 - In Problem 21, the mass m(t) is the sum of three...Ch. 1.3 - By Newtons universal law of gravitation the...Ch. 1.3 - Suppose a hole is drilled through the center of...Ch. 1.3 - Learning Theory In the theory of learning, the...Ch. 1.3 - Forgetfulness In Problem 25 assume that the rate...Ch. 1.3 - Infusion of a Drug A drug is infused into a...Ch. 1.3 - Tractrix A motorboat starts at the origin and...Ch. 1.3 - Reflecting surface Assume that when the plane...Ch. 1.3 - Reread Problem 45 in Exercises 1.1 and then give...Ch. 1.3 - Prob. 31ECh. 1.3 - Prob. 32ECh. 1.3 - Prob. 33ECh. 1.3 - Rotating Fluid As shown in Figure 1.3.24(a), a...Ch. 1.3 - Prob. 35ECh. 1.3 - Prob. 36ECh. 1.3 - Let It snow The snowplow problem is a classic and...Ch. 1.3 - Population Dynamics Suppose that dP/dt = 0.15 P(t)...Ch. 1.3 - Radioactive Decay Suppose that dA/dt = 0.0004332...Ch. 1.3 - Reread this section and classify each mathematical...Ch. 1 - In Problems 1 and 2 fill in the blank and then...Ch. 1 - In Problems 1 and 2 fill in the blank and then...Ch. 1 - In Problems 3 and 4 fill in the blank and then...Ch. 1 - In Problems 3 and 4 fill in the blank and then...Ch. 1 - In Problems 5 and 6 compute y and y and then...Ch. 1 - In Problems 5 and 6 compute y and y and then...Ch. 1 - In Problems 712 match each of the given...Ch. 1 - In Problems 712 match each of the given...Ch. 1 - In Problems 712 match each of the given...Ch. 1 - In Problems 712 match each of the given...Ch. 1 - In Problems 712 match each of the given...Ch. 1 - In Problems 712 match each of the given...Ch. 1 - In Problems 13 and 14 determine by inspection at...Ch. 1 - In Problems 13 and 14 determine by inspection at...Ch. 1 - In Problems 15 and 16 interpret each statement as...Ch. 1 - In Problems 15 and 16 interpret each statement as...Ch. 1 - (a) Give the domain of the function y = x2/3. (b)...Ch. 1 - (a) Verify that the one-parameter family y2 2y =...Ch. 1 - The function y = x 2/x is a solution of the DE xy...Ch. 1 - Suppose that y(x) denotes a solution of the...Ch. 1 - A differential equation may possess more than one...Ch. 1 - What is the slope of the tangent line to the graph...Ch. 1 - In Problems 2326 verify that the indicated...Ch. 1 - In Problems 2326 verify that the indicated...Ch. 1 - In Problems 2326 verify that the indicated...Ch. 1 - In Problems 2326 verify that the indicated...Ch. 1 - In Problems 2730 use (12) of Section 1.1 to verify...Ch. 1 - In Problems 2730 use (12) of Section 1.1 to verify...Ch. 1 - In Problems 2730 use (12) of Section 1.1 to verify...Ch. 1 - In Problems 2730 use (12) of Section 1.1 to verify...Ch. 1 - In Problems 3134 verify that the indicated...Ch. 1 - In Problems 3134 verify that the indicated...Ch. 1 - In Problems 3134 verify that the indicated...Ch. 1 - In Problems 3134 verify that the indicated...Ch. 1 - In Problems 3538, y = c1e3x + c2ex 2x is a...Ch. 1 - In Problems 3538, y = c1e3x + c2ex 2x is a...Ch. 1 - In Problems 3538, y = c1e3x + c2ex 2x is a...Ch. 1 - In Problems 3538, y = c1e3x + c2ex 2x is a...Ch. 1 - The graph of a solution of a second-order...Ch. 1 - A tank in the form of a right-circular cylinder of...
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, subject and related others by exploring similar questions and additional content below.Similar questions
- Problem 4. Margrabe formula and the Greeks (20 pts) In the homework, we determined the Margrabe formula for the price of an option allowing you to swap an x-stock for a y-stock at time T. For stocks with initial values xo, yo, common volatility σ and correlation p, the formula was given by Fo=yo (d+)-x0Þ(d_), where In (±² Ꭲ d+ õ√T and σ = σ√√√2(1 - p). дго (a) We want to determine a "Greek" for ỡ on the option: find a formula for θα (b) Is дго θα positive or negative? (c) We consider a situation in which the correlation p between the two stocks increases: what can you say about the price Fo? (d) Assume that yo< xo and p = 1. What is the price of the option?arrow_forwardThe Course Name Real Analysis please Solve questions by Real Analysisarrow_forwardWe consider a 4-dimensional stock price model given (under P) by dẴ₁ = µ· Xt dt + йt · ΣdŴt where (W) is an n-dimensional Brownian motion, π = (0.02, 0.01, -0.02, 0.05), 0.2 0 0 0 0.3 0.4 0 0 Σ= -0.1 -4a За 0 0.2 0.4 -0.1 0.2) and a E R. We assume that ☑0 = (1, 1, 1, 1) and that the interest rate on the market is r = 0.02. (a) Give a condition on a that would make stock #3 be the one with largest volatility. (b) Find the diversification coefficient for this portfolio as a function of a. (c) Determine the maximum diversification coefficient d that you could reach by varying the value of a? 2arrow_forward
- Question 1. Your manager asks you to explain why the Black-Scholes model may be inappro- priate for pricing options in practice. Give one reason that would substantiate this claim? Question 2. We consider stock #1 and stock #2 in the model of Problem 2. Your manager asks you to pick only one of them to invest in based on the model provided. Which one do you choose and why ? Question 3. Let (St) to be an asset modeled by the Black-Scholes SDE. Let Ft be the price at time t of a European put with maturity T and strike price K. Then, the discounted option price process (ert Ft) t20 is a martingale. True or False? (Explain your answer.) Question 4. You are considering pricing an American put option using a Black-Scholes model for the underlying stock. An explicit formula for the price doesn't exist. In just a few words (no more than 2 sentences), explain how you would proceed to price it. Question 5. We model a short rate with a Ho-Lee model drt = ln(1+t) dt +2dWt. Then the interest rate…arrow_forwardIn this problem, we consider a Brownian motion (W+) t≥0. We consider a stock model (St)t>0 given (under the measure P) by d.St 0.03 St dt + 0.2 St dwt, with So 2. We assume that the interest rate is r = 0.06. The purpose of this problem is to price an option on this stock (which we name cubic put). This option is European-type, with maturity 3 months (i.e. T = 0.25 years), and payoff given by F = (8-5)+ (a) Write the Stochastic Differential Equation satisfied by (St) under the risk-neutral measure Q. (You don't need to prove it, simply give the answer.) (b) Give the price of a regular European put on (St) with maturity 3 months and strike K = 2. (c) Let X = S. Find the Stochastic Differential Equation satisfied by the process (Xt) under the measure Q. (d) Find an explicit expression for X₁ = S3 under measure Q. (e) Using the results above, find the price of the cubic put option mentioned above. (f) Is the price in (e) the same as in question (b)? (Explain why.)arrow_forward3. Consider the polynomial equation 6-iz+7z² - iz³ +z = 0 for which the roots are 3i, -2i, -i, and i. (a) Verify the relations between this roots and the coefficients of the polynomial. (b) Find the annulus region in which the roots lie.arrow_forward
- The managing director of a consulting group has the accompanying monthly data on total overhead costs and professional labor hours to bill to clients. Complete parts a through c. Question content area bottom Part 1 a. Develop a simple linear regression model between billable hours and overhead costs. Overhead Costsequals=212495.2212495.2plus+left parenthesis 42.4857 right parenthesis42.485742.4857times×Billable Hours (Round the constant to one decimal place as needed. Round the coefficient to four decimal places as needed. Do not include the $ symbol in your answers.) Part 2 b. Interpret the coefficients of your regression model. Specifically, what does the fixed component of the model mean to the consulting firm? Interpret the fixed term, b 0b0, if appropriate. Choose the correct answer below. A. The value of b 0b0 is the predicted billable hours for an overhead cost of 0 dollars. B. It is not appropriate to interpret b 0b0, because its value…arrow_forward3. Consider the polynomial equation 6-iz+7z2-iz³ +z = 0 for which the roots are 3i, -2i, -i, and i. (a) Verify the relations between this roots and the coefficients of the polynomial. (b) Find the annulus region in which the roots lie.arrow_forwardWrite the equation of the trigonometric function shown in the graph. LO 5 4 3 2 1 y -5 -5 4 8 8 500 -1 -2 -3 -4 -5 x 5 15л 5л 25л 15л 35π 5л 4 8 2 8 4 8arrow_forward
- c) Using only Laplace transforms solve the following Samuelson model given below i.e., the second order difference equation (where yt is national income): - Yt+2 6yt+1+5y₁ = 0, if y₁ = 0 for t < 0, and y₁ = 0, y₁ = 1 1-e-s You may use without proof that L-1[s(1-re-s)] = f(t) = r² for n ≤tarrow_forward5. 156 m/WXY = 59° 63 E 7. B E 101 C mFE = 6. 68° 8. C 17arrow_forwardScoring: MATH 15 FILING /10 COMPARISON /10 RULER I 13 Express EMPLOYMENT PROFESSIONALS NAME: SKILLS EVALUATION TEST- Light Industrial MATH-Solve the following problems. (Feel free to use a calculator.) DATE: 1. If you were asked to load 225 boxes onto a truck, and the boxes are crated, with each crate containing nine boxes, how many crates would you need to load? 2. Imagine you live only one mile from work and you decide to walk. If you walk four miles per hour, how long will it take you to walk one mile? 3. Add 3 feet 6 inches + 8 feet 2 inches + 4 inches + 2 feet 5 inches. 4. In a grocery store, steak costs $3.85 per pound. If you buy a three-pound steak and pay for it with a $20 bill, how much change will you get? 5. Add 8 minutes 32 seconds + 37 minutes 18 seconds + 15 seconds. FILING - In the space provided, write the number of the file cabinet where the company should be filed. Example: File Cabinet #4 Elson Co. File Cabinets: 1. Aa-Bb 3. Cg-Dz 5. Ga-Hz 7. La-Md 9. Na-Oz 2. Bc-Cf…arrow_forwardarrow_back_iosSEE MORE QUESTIONSarrow_forward_ios
Recommended textbooks for you
Discrete Mathematics and Its Applications ( 8th I...MathISBN:9781259676512Author:Kenneth H RosenPublisher:McGraw-Hill Education
Mathematics for Elementary Teachers with Activiti...MathISBN:9780134392790Author:Beckmann, SybillaPublisher:PEARSON
Thinking Mathematically (7th Edition)MathISBN:9780134683713Author:Robert F. BlitzerPublisher:PEARSON
Discrete Mathematics With ApplicationsMathISBN:9781337694193Author:EPP, Susanna S.Publisher:Cengage Learning,
Pathways To Math Literacy (looseleaf)MathISBN:9781259985607Author:David Sobecki Professor, Brian A. MercerPublisher:McGraw-Hill Education
Discrete Mathematics and Its Applications ( 8th I...
Math
ISBN:9781259676512
Author:Kenneth H Rosen
Publisher:McGraw-Hill Education
Mathematics for Elementary Teachers with Activiti...
Math
ISBN:9780134392790
Author:Beckmann, Sybilla
Publisher:PEARSON
Thinking Mathematically (7th Edition)
Math
ISBN:9780134683713
Author:Robert F. Blitzer
Publisher:PEARSON
Discrete Mathematics With Applications
Math
ISBN:9781337694193
Author:EPP, Susanna S.
Publisher:Cengage Learning,
Pathways To Math Literacy (looseleaf)
Math
ISBN:9781259985607
Author:David Sobecki Professor, Brian A. Mercer
Publisher:McGraw-Hill Education
01 - What Is A Differential Equation in Calculus? Learn to Solve Ordinary Differential Equations.; Author: Math and Science;https://www.youtube.com/watch?v=K80YEHQpx9g;License: Standard YouTube License, CC-BY
Higher Order Differential Equation with constant coefficient (GATE) (Part 1) l GATE 2018; Author: GATE Lectures by Dishank;https://www.youtube.com/watch?v=ODxP7BbqAjA;License: Standard YouTube License, CC-BY
Solution of Differential Equations and Initial Value Problems; Author: Jefril Amboy;https://www.youtube.com/watch?v=Q68sk7XS-dc;License: Standard YouTube License, CC-BY