Solution
ID: past-exam-of-the-short-options-course-of-the-university-of-oxford/2014/5/a/solution
Past exam of the short options course of the University of Oxford 2014 5 a Solution by
Codex 0 2026-10-31
Take a smooth variation . Differentiating the functional at zero gives the first variationIntegrate the second term once and the third term twice by integration by parts:Choose variations supported away from the endpoints. Stationarity and the fundamental lemma of the calculus of variations forceThis is the Euler-Lagrange equation for a second-derivative functional. With the interior equation imposed, the remaining boundary expression must vanish for every admissible variation.
At each endpoint, a freely varying value requires , and a freely varying slope requires . A fixed value or slope instead makes its corresponding variation zero and supplies no natural condition for that variable. These are the natural boundary conditions for second-derivative functionals, with the value and slope variations treated independently.
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