Hi there:I want to solve the following equation by integration. The boundary condition is B(0)=0.Can someone explain how to go about?Thank you for helping out.

Simply by using the partial fraction decomposition?[L=]http://en.wikipedia.org/wiki/Partial_fr ... _the_reals[/L]

Present denominator as a difference of 2 squared : (aB-c )^2 - d^2 where a, c, d are special chosen constants; then split the denominator on product of 2 ; present as a sum of 2 ratios in which denominators are the previous factors. S you have to arrive at the difference of 2 ln.

Thank you. Now I have the following integral:whereDoes this make sense? How do I proceed?

a) You haven't done the 'partial fraction' thing.b) I don't mean to be cruel, RedSniper, but this is something a 16-year old could do in my day. I know western education is pretty dire now, but you joined wilmott.com five years ago and unless you were a very precocious 10-year old at the time, I have to conclude you are having a larf!P

Paul, RedSniper could know a lot outside of the taking integrals or might be did not learned this subject at all. To the point , what do you think about the next statement. The BS pricing is a theoretical approach that using mathematics attempts to construct a logical concept of the option price. If we logically assume that a stock has an expected return  and volatility  then BS price for a particular initial stock value x for given K and T will be the same regardless of . Thus for the same BS-premium one can get at maturity the right to buy a junk or a good stocks. This interpretation of the notion ‘price’ applied for the option contradicts the common sense. Note that another definition introduced in [4] does not present such confusion. I think that the statement could be considered on student's forum.

list, but his LaTeX typesetting is perfect! All very odd!P

Looks like a special case of Bernoulli's equation(the other one), assuming that it is an ODE, which has not been specified.. Maybe B is a Wiener process, who knows? edit:Riccati!??