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SDE Hell. 14.14

S

Simon_P

Member
Hi Guys,

Kinda stuck. I think I can follow the solution to this, but when i try and do it the way I'll actually remember for the exam (Taylor's thm, simplify) I get stuck. The PDF is a potential answer, which doesn't work; I don't understand why!!! Question 14.14 in the study material.

Don't be afraid to rip it to shreads, notation and all! I'll need all the help I can get,

Thanks,
Simon
 

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Hmm, I've made myself look a little silly here, the PDF is the wrong way up! It needs rotating before it makes sense. I'll write it the right way up in the exams :).
 
Hi Simon

It's now 12.30am my time, so I hope I could help you.

In your solution, the first, second and third line looks fine to me. However, your fourth line looks funny. Not sure how you arrived to that, but there is an extra term in the middle i think which should not be there.

I let A_t = exp (X_t)

so (d=curly d's); dA/dt = 0

and dA/dX = d2A/dX2 = exp (X_t) = A_t

Let me know what you think.
 
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