l1.15 The Algebra of the Differential Equation 1(A) +=8I=r∏b af +oS6}+0{S+oS6}=-f at as 2 aS S ∫af+0f or+0}+ O/s+0} af 2 aS f af S 2S2s+0=7-f+Sb S ISt notice that all of the u's cancel out Options, Futures, and Other Derivatives, 4th edition@ 2000 by John C. Hull Tang Yincai, C 2003, Shanghai Normal University11.15 Options, Futures, and Other Derivatives, 4th edition © 2000 by John C. Hull Tang Yincai, © 2003, Shanghai Normal University The Algebra of the Differential Equation I (=D) • notice that all of the m’s cancel out     S t S f S t r f S f t f S t S f S t r f S f t f S t S f S t r f S f S t S f S S f t f S t S f S t S w r f S f S w S f S t S f S S f t f S t S f S r f S f f r t S f f       m   m   m     m                    = − +        −   −         + = − +               + +   −         + = − +   +        +        +   +   −         + = − +   +          +        +   +   −         = − +   − + =  =    − + 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 1 0 2 1 0 0 0 2 1 2 1