Algebraic aspects of evolution partial differential equation arising in the study of constant elasticity of variance model from financial mathematics

The optimal investment-consumption problem under the constant elasticity of variance (CEV) model is investigated from the perspective of Lie group analysis. The Lie symmetry group of the evolution partial differential equation describing the CEV model is derived. The Lie point symmetries are then used to obtain an exact solution of the governing model satisfying a standard terminal condition. Finally, we construct conservation laws of the underlying equation using the general theorem on conservation laws.

Solutions and Conservation Laws of a (2+1)-Dimensional Boussinesq Equation

We study a nonlinear evolution partial differential equation, namely, the (2+1)-dimensional Boussinesq equation. For the first time Lie symmetry method together with simplest equation method is used to find the exact solutions of the (2+1)-dimensional Boussinesq equation. Furthermore, the new conservation theorem due to Ibragimov will be utilized to construct the conservation laws of the (2+1)-dimensional Boussinesq equation.