Explanation Given: The first order differential equation is y ′ + | y | = 2 . Calculation: The first order differential equation is, y ′ + | y | = 2 y ′ = 2 − | y | Suppose y ′ = 0

Differential Equations with Boundary-Value Problems (MindTap Course List)

9th Edition

ISBN: 9781305965799

Author: Dennis G. Zill

Publisher: Cengage Learning

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Differential Equations

Have you ever observed the movement of the satellites and rockets or how the planets go around the sun in their orbits? How will you determine their motion? Definitely they follow some scientific laws and these kinds of problems are framed as differentia…

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Chapter 2, Problem 8RE

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To fill: The blank in the statement “By inspection, two solutions of the differential equation y′+|y|=2 are _______”.

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Chapter 2, Problem 7RE

Chapter 2, Problem 9RE

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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.)

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Chapter 2 Solutions

Differential Equations with Boundary-Value Problems (MindTap Course List)

Ch. 2.1 - In Problems 14 reproduce the given...Ch. 2.1 - In Problems 14 reproduce the given...Ch. 2.1 - dydx=1xy (a) y(0) = 0 (b) y(1) = 0 (c) y(2) = 2...Ch. 2.1 - In Problems 14 reproduce the given...Ch. 2.1 - Prob. 5E Ch. 2.1 - Prob. 6E Ch. 2.1 - Prob. 7E Ch. 2.1 - Prob. 8E Ch. 2.1 - Prob. 9E Ch. 2.1 - Prob. 10E

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The blank in the statement “By inspection, two solutions of the differential equation y ′ + | y | = 2 are _______”.

Solution Summary: The author explains the solution for the first order differential equation yprime '+' left|y'right'=2 by inspection method.

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To fill: The blank in the statement “By inspection, two solutions of the differential equation y′+|y|=2 are _______”.

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Chapter 2 Solutions