Solution

ID: past-exam-of-the-probability-statistics-and-options-i-course-of-the-university-of-oxford/2010/f/1/a/solution

The inverse function theorem says that a continuously differentiable map on an open set, with invertible derivative at a point, restricts to a diffeomorphism between neighborhoods of that point and its image. The inverse derivative is the inverse matrix of the original derivative at the corresponding preimage.
Put . Differentiating each coordinate gives
The determinant never vanishes on , so the theorem applies at every point. The image point has preimage : the equations imply . Therefore

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