- #1
courtrigrad
- 1,236
- 2
Hello all
Could someone show me how we get: [tex] M(t+dt) - M(t) \doteq \frac{dM}{dt}dt + ... [/tex]. I know that you use a Taylor Series expansion, but I need to see how it is done as I am new in this subject. How would you derive the formula [tex] e^{-r(T-t)} [/tex]? Also could someone explain the concept of Seperation of Variables?
Thanks
Could someone show me how we get: [tex] M(t+dt) - M(t) \doteq \frac{dM}{dt}dt + ... [/tex]. I know that you use a Taylor Series expansion, but I need to see how it is done as I am new in this subject. How would you derive the formula [tex] e^{-r(T-t)} [/tex]? Also could someone explain the concept of Seperation of Variables?
Thanks
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