- #1

saminator910

- 96

- 1

Ito's lemma (from Taylor series) to get df

[itex] df = \frac{\partial f}{\partial x} dx + \frac{\partial f}{\partial t} dt + \frac{\partial^{2} f}{\partial x^{2}} dx^{2} + ....[/itex]

higher order terms, but they cancel out in stochastics.

but this seems to contradict the standard differential of a function from multivatiable calculus

[itex] df = \frac{\partial f}{\partial x} dx + \frac{\partial f}{\partial t} dt [/itex]

I don't get why they are different, can anyone explain?