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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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# Homework Help: Type of Expansions and Differential Equations

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