Question

Just a challenge for some of you so-called 'math geeks'. Let's test your skills shall we? First person to solve correctly recieves a medal + fan + a special testimonial! ;) GO!!! I hope to see the one who solves it soon! NO SPAM!!

Answer 1

I will post the solution if absolutely NO ONE gets it.

Answer 2

this might take a while

Answer 3

Take your time :)

Answer 4

pass don't know what I would be solving for

Answer 5

You don't have too.

Answer 6

I wish I could take the time to solve it, but I don't have any free time right now xp

;-;

Answer 7

That's OK.

Answer 8

This question will remain open until somebody solves :)

Answer 9

Okie dokie :3

Answer 10

aweeeeeeeeeeee

Answer 11

wait

wut is

Answer 12

What does the S stand for in the equation?

Answer 13

When you put your homework when you can't figure it out and say it's a challenge

Answer 14

derarivate.

Answer 15

lol @Astrophysics

Answer 16

ok cool partial derivatives

Answer 17

yay

Answer 18

astro wins

Answer 19

And sigma is a constant

Answer 20

Keep going mate.

Answer 21

This looks somewhat like a parabolic differential equation like a heat conduction equation,
but that equation is non-linear in S.

Answer 22

So superposition does not apply.

Answer 23

gtg

Answer 24

Yeah, like you just want to solve the PDE?

Answer 25

This is called the black scholes model.

Answer 26

So trying to break it down into eigenmodes will not work.

Answer 27

No.

Answer 28

Maybe there is a cleaver way to re-express it in terms of dervatives of some product.

Answer 29

Oh this is for finance

Answer 30

Like derivative of (S * V)

Answer 31

Yes. I like to look at this as more of a therom.

Answer 32

Ok so like what do you want to do with it..

Answer 33

Oh mira it is a heat equation i believe

Answer 34

Break it down into its essential parts. This problem is 100% riskless.

Answer 35

So for example, if we define u = S * V
Then du/dS = S * dV/dS + V
from the product rule.

Answer 36

There you go. The same rules apply.

Answer 37

I am not sure what to solve for exactly.

Answer 38

Then through some transformation like that, we might get a formula that is linear in u.

Answer 39

I got it

1 + 1 = Cookies

Answer 40

Thank me later

Answer 41

Later is now

Answer 42

It does turn into a formula following the product shown, although it wasn't as accurate, you've come close to the first step.

Answer 43

Thank me now :D

Answer 44

I have solved teh greatest mystery mankind has ever known

Answer 45

awe shadow, lets not spam

Answer 46

Shadow the absurd

Answer 47

Yes, the second derivative does not produce an S^2 factor. I get
d^2u/dS^2 = S * d^2V/dS^2 + 2 * dV/dS

Answer 48

@shifuyanli - When you say "it does turn into a formula following the product shown", are you looking at a given answer to this problem?

Answer 49

No.

Answer 50

Ok since I don't really work with PDE's but I'm assuming it has a similar approach as ODE's so product rule and integrating factor since it's homogeneous as well, but it could be a bit tougher...mhm

Answer 51

Av/at=a^2v/ax^2+a^2/ax+bvah/at=a^2h/ax^2

Answer 52

^First step

Answer 53

Use latex

Answer 54

hmm

Answer 55

Latex takes forever

Answer 56

draw

Answer 57

Plus, it lags.

Answer 58

ikt @shifuyanli

Answer 59

OK.

Answer 60

@ganeshie8

Answer 61

\[\large\bf \frac{ Av }{ at }=\frac{ a^2v }{ax^2 }+\frac{ a^2 }{ ax }+\frac{ bvah }{ at }=\frac{ a^2h }{ ax^2 }\]