
Fundamentals of Differential Equations and Boundary Value Problems
7th Edition
ISBN: 9780321977106
Author: Nagle, R. Kent
Publisher: Pearson Education, Limited
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Chapter 8.5, Problem 4E
To determine
To find:
The general solution of a differential equation by substitution of
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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.)
3. 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.
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…
Chapter 8 Solutions
Fundamentals of Differential Equations and Boundary Value Problems
Ch. 8.1 - In Problems 18, determine the first three nonzero...Ch. 8.1 - In Problems 18, determine the first three nonzero...Ch. 8.1 - In Problems 18, determine the first three nonzero...Ch. 8.1 - In Problems 18, determine the first three nonzero...Ch. 8.1 - In Problems 18, determine the first three nonzero...Ch. 8.1 - In Problems 1-8, determine the first three nonzero...Ch. 8.1 - In Problems 1-8, determine the first three nonzero...Ch. 8.1 - In Problems 1-8, determine the first three nonzero...Ch. 8.1 - a. Construct the Taylor polynomial p3(x) of degree...Ch. 8.1 - a. Construct the Taylor polynomial p3(x) of degree...
Ch. 8.1 - Prob. 11ECh. 8.1 - Prob. 12ECh. 8.1 - Duffings Equation. In the study of a nonlinear...Ch. 8.1 - Soft versus Hard Springs. For Duffings equation...Ch. 8.1 - Prob. 15ECh. 8.1 - van der Pol Equation. In the study of the vacuum...Ch. 8.2 - In Problems 1-6, determine the convergence set of...Ch. 8.2 - In Problems 1-6, determine the convergence set of...Ch. 8.2 - In Problems 1-6, determine the convergence set of...Ch. 8.2 - In Problems 1-6, determine the convergence set of...Ch. 8.2 - In Problems 1-6, determine the convergence set of...Ch. 8.2 - In Problems 1-6, determine the convergence set of...Ch. 8.2 - Prob. 7ECh. 8.2 - Determine the convergence set of the given power...Ch. 8.2 - In Problems 9 and 10, find the power series...Ch. 8.2 - In Problems 9 and 10, find the power series...Ch. 8.2 - In Problems 11-14, find the first three nonzero...Ch. 8.2 - In Problems 11-14, find the first three nonzero...Ch. 8.2 - Prob. 13ECh. 8.2 - In Problems 11-14, find the first three nonzero...Ch. 8.2 - Prob. 15ECh. 8.2 - Prob. 16ECh. 8.2 - Prob. 17ECh. 8.2 - In Problems 17-20, find a power series expansion...Ch. 8.2 - Prob. 19ECh. 8.2 - In Problems 17-20, find a power series expansion...Ch. 8.2 - Prob. 21ECh. 8.2 - In Problems 21 and 22, find a power series...Ch. 8.2 - Prob. 23ECh. 8.2 - In Problems 23-26, express the given power series...Ch. 8.2 - Prob. 25ECh. 8.2 - In Problems 23-26, express the given power series...Ch. 8.2 - Prob. 27ECh. 8.2 - Show that...Ch. 8.2 - In Problems 29-34, determine the Taylor series...Ch. 8.2 - In Problems 2934, determine the Taylor series...Ch. 8.2 - Prob. 31ECh. 8.2 - In Problems 2934, determine the Taylor series...Ch. 8.2 - Prob. 33ECh. 8.2 - In Problems 2934, determine the Taylor series...Ch. 8.2 - Prob. 35ECh. 8.2 - Let f(x) and g(x) be analytic at x0. Determine...Ch. 8.2 - Prob. 37ECh. 8.2 - Prob. 38ECh. 8.3 - In Problems 110, determine all the singular points...Ch. 8.3 - In Problems 110, determine all the singular points...Ch. 8.3 - In Problems 110, determine all the singular points...Ch. 8.3 - Prob. 4ECh. 8.3 - In Problem 110, determine all the singular points...Ch. 8.3 - Prob. 6ECh. 8.3 - Prob. 7ECh. 8.3 - In Problems 110, determine all the singular points...Ch. 8.3 - In Problems 110, determine all the singular points...Ch. 8.3 - In Problems 110, determine all the singular points...Ch. 8.3 - In Problems 1118, find at least the first four...Ch. 8.3 - In Problems 1118, find at least the first four...Ch. 8.3 - Prob. 13ECh. 8.3 - In Problems 1118, find at least the first four...Ch. 8.3 - In Problems 1118, find at least the first four...Ch. 8.3 - Prob. 16ECh. 8.3 - In Problems 1118, find at least the first four...Ch. 8.3 - Prob. 18ECh. 8.3 - In Problems 1924, find a power series expansion...Ch. 8.3 - In Problems 1924, find a power series expansion...Ch. 8.3 - In Problems 1924, find a power series expansion...Ch. 8.3 - In Problems 1924, find a power series expansion...Ch. 8.3 - In Problems 1924, find a power series expansion...Ch. 8.3 - In Problems 19-24, find a power series expansion...Ch. 8.3 - In Problems 25-28, find at least the first four...Ch. 8.3 - Prob. 26ECh. 8.3 - In Problems 25-28, find at least the first four...Ch. 8.3 - In Problems 25-28, find at least the first four...Ch. 8.3 - Prob. 29ECh. 8.3 - Prob. 30ECh. 8.3 - In Problems 29-31, use the first few terms of the...Ch. 8.3 - Prob. 32ECh. 8.3 - Use the ratio test to show that the radius of...Ch. 8.3 - Prob. 34ECh. 8.3 - Prob. 35ECh. 8.3 - Variable Spring Constant. As a spring is heated,...Ch. 8.4 - In Problems 16, find a minimum value for the...Ch. 8.4 - In Problems 16, find a minimum value for the...Ch. 8.4 - In Problems 16, find a minimum value for the...Ch. 8.4 - In Problems 16, find a minimum value for the...Ch. 8.4 - Prob. 5ECh. 8.4 - In Problems 16, find a minimum value for the...Ch. 8.4 - In Problems 712, find at least the first four...Ch. 8.4 - In Problems 712, find at least the first four...Ch. 8.4 - In Problems 712, find at least the first four...Ch. 8.4 - Prob. 10ECh. 8.4 - In Problems 712, find at least the first four...Ch. 8.4 - In Problems 712, find at least the first four...Ch. 8.4 - In Problems 1319, find at least the first four...Ch. 8.4 - In Problems 1319, find at least the first four...Ch. 8.4 - In Problems 1319, find at least the first four...Ch. 8.4 - Prob. 16ECh. 8.4 - In Problems 13-19, find at least the first four...Ch. 8.4 - In Problems 13-19, find at least the first four...Ch. 8.4 - In Problems 13-19, find at least the first four...Ch. 8.4 - To derive the general solution given by equations...Ch. 8.4 - In Problems 21-28, use the procedure illustrated...Ch. 8.4 - Prob. 22ECh. 8.4 - In Problems 21-28, use the procedure illustrated...Ch. 8.4 - Prob. 24ECh. 8.4 - In Problems 21-28, use the procedure illustrated...Ch. 8.4 - In Problems 21-28, use the procedure illustrated...Ch. 8.4 - In Problems 21-28, use the procedure illustrated...Ch. 8.4 - Prob. 28ECh. 8.4 - The equation (1x2)y2xy+n(n+1)y=0, where n is an...Ch. 8.4 - Aging Spring. As a spring ages, its spring...Ch. 8.4 - Aging Spring without Damping. In the mass-spring...Ch. 8.5 - Prob. 1ECh. 8.5 - Prob. 2ECh. 8.5 - Prob. 3ECh. 8.5 - Prob. 4ECh. 8.5 - Prob. 5ECh. 8.5 - Prob. 6ECh. 8.5 - Prob. 7ECh. 8.5 - Prob. 8ECh. 8.5 - Prob. 9ECh. 8.5 - Prob. 10ECh. 8.5 - Prob. 11ECh. 8.5 - Prob. 12ECh. 8.5 - Prob. 13ECh. 8.5 - Prob. 14ECh. 8.5 - Prob. 15ECh. 8.5 - Prob. 16ECh. 8.5 - In Problems 15-17, solve the given initial value...Ch. 8.5 - Prob. 18ECh. 8.5 - Prob. 19ECh. 8.6 - In Problems 1-10, classify each singular point...Ch. 8.6 - Prob. 2ECh. 8.6 - Prob. 3ECh. 8.6 - Prob. 4ECh. 8.6 - Prob. 5ECh. 8.6 - Prob. 6ECh. 8.6 - Prob. 7ECh. 8.6 - Prob. 8ECh. 8.6 - Prob. 9ECh. 8.6 - Prob. 10ECh. 8.6 - Prob. 11ECh. 8.6 - In Problems 11-18, find the indicial equation and...Ch. 8.6 - In Problems 11-18, find the indicial equation and...Ch. 8.6 - In Problems 11-18, find the indicial equation and...Ch. 8.6 - In Problems 11-18, find the indicial equation and...Ch. 8.6 - In Problems 1118, find the indicial equation and...Ch. 8.6 - In Problems 1118, find the indicial equation and...Ch. 8.6 - In Problems 1118, find the indicial equation and...Ch. 8.6 - Prob. 19ECh. 8.6 - Prob. 20ECh. 8.6 - Prob. 21ECh. 8.6 - Prob. 22ECh. 8.6 - Prob. 23ECh. 8.6 - Prob. 24ECh. 8.6 - Prob. 25ECh. 8.6 - Prob. 26ECh. 8.6 - Prob. 27ECh. 8.6 - Prob. 28ECh. 8.6 - Prob. 29ECh. 8.6 - Prob. 30ECh. 8.6 - Prob. 31ECh. 8.6 - Prob. 32ECh. 8.6 - Prob. 33ECh. 8.6 - Prob. 34ECh. 8.6 - Prob. 35ECh. 8.6 - Prob. 36ECh. 8.6 - Prob. 37ECh. 8.6 - Prob. 38ECh. 8.6 - In Problems 39 and 40, try to use the method of...Ch. 8.6 - Prob. 40ECh. 8.6 - Prob. 41ECh. 8.6 - Prob. 42ECh. 8.6 - Prob. 43ECh. 8.6 - Prob. 44ECh. 8.6 - Prob. 45ECh. 8.6 - Prob. 46ECh. 8.6 - Prob. 47ECh. 8.7 - In Problems 1-14, find at least the first three...Ch. 8.7 - Prob. 2ECh. 8.7 - Prob. 3ECh. 8.7 - Prob. 4ECh. 8.7 - Prob. 5ECh. 8.7 - In Problems 1-14, find at least the first three...Ch. 8.7 - Prob. 7ECh. 8.7 - Prob. 8ECh. 8.7 - In Problems 1-14, find at least the first three...Ch. 8.7 - Prob. 10ECh. 8.7 - Prob. 11ECh. 8.7 - Prob. 12ECh. 8.7 - Prob. 13ECh. 8.7 - Prob. 14ECh. 8.7 - In Problems 15 and 16, determine whether the given...Ch. 8.7 - Prob. 16ECh. 8.7 - In Problems 17-20, find at least the first three...Ch. 8.7 - Prob. 18ECh. 8.7 - In Problems 17-20, find at least the first three...Ch. 8.7 - Prob. 20ECh. 8.7 - Prob. 21ECh. 8.7 - In Problem 21 consider a column with a rectangular...Ch. 8.7 - Prob. 23ECh. 8.7 - Prob. 24ECh. 8.7 - Prob. 25ECh. 8.7 - To obtain two linearly independent solutions to...Ch. 8.8 - In Problems 1-4, express a general solution to the...Ch. 8.8 - Prob. 2ECh. 8.8 - In Problems 1-4, express a general solution to the...Ch. 8.8 - In Problems 1-4, express a general solution to the...Ch. 8.8 - Prob. 5ECh. 8.8 - Prob. 6ECh. 8.8 - Prob. 7ECh. 8.8 - Prob. 8ECh. 8.8 - Prob. 9ECh. 8.8 - Prob. 10ECh. 8.8 - Show that the confluent hypergeometric equation...Ch. 8.8 - Prob. 12ECh. 8.8 - Prob. 13ECh. 8.8 - Prob. 14ECh. 8.8 - Prob. 15ECh. 8.8 - Prob. 16ECh. 8.8 - Prob. 17ECh. 8.8 - Prob. 18ECh. 8.8 - In Problems 19 and 20, a Bessel equation is given....Ch. 8.8 - Prob. 21ECh. 8.8 - Prob. 22ECh. 8.8 - Prob. 23ECh. 8.8 - Prob. 24ECh. 8.8 - Show that J1/2(x)=(2/x)1/2sinx and...Ch. 8.8 - The Bessel functions of order v=n+1/2, n any...Ch. 8.8 - Prob. 27ECh. 8.8 - Prob. 28ECh. 8.8 - Prob. 29ECh. 8.8 - Prob. 30ECh. 8.8 - Prob. 31ECh. 8.8 - To prove Rodriguess formula (52) for Legendre...Ch. 8.8 - Prob. 34ECh. 8.8 - Prob. 35ECh. 8.8 - Prob. 36ECh. 8.8 - The Hermite polynomials Hn(x) are polynomial...Ch. 8.8 - Prob. 38ECh. 8.8 - Prob. 39ECh. 8.8 - Reduction to Bessels Equation. The class of...Ch. 8.8 - a. Show that the substitution z(x)=xy(x) renders...Ch. 8.RP - Find the first four nonzero terms in the Taylor...Ch. 8.RP - Prob. 2RPCh. 8.RP - Find at least the first four nonzero terms in a...Ch. 8.RP - Prob. 4RPCh. 8.RP - Find at least the first four nonzero terms in a...Ch. 8.RP - Prob. 6RPCh. 8.RP - Use the method of Frobenius to find at least the...Ch. 8.RP - Find the indicial equation and its roots and state...Ch. 8.RP - Find at least the first three nonzero terms in the...
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