Homogeneous first-order ODE y' = (x-y)/(x+y)
Question
Solve the differential equation .
Short answer
. Rearranging, , i.e. , which is . (Substituting also works.) Explicitly, .
Adapted from Zhou, A Practical Guide to Quantitative Finance Interviews, sec. 3.5 Ordinary Differential Equations, 'Separable ODE B', p.46; question and answer rewritten by SelfMadeQuant.com.
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