TITLE:
Simple Differential Equations of A & H Stock Prices and Application to Analysis of Equilibrium State
AUTHORS:
Tian-Quan Yun, Tao Yun
KEYWORDS:
A & H Stock Markets, Differential Equation, G-Contraction Mapping, Equilibrium State, Stock Value
JOURNAL NAME:
Technology and Investment,
Vol.1 No.2,
May
25,
2010
ABSTRACT: Similar to the simplest differential equation of stock price, a set of simultaneous differential equations of stock prices of the same share in both A and H stock markets have been established. This is a set of simultaneous nonlinear differential equations, which can be solved by iteration method via a proof by g-contraction mapping theorem. Further more, the exact solution for equilibrium state and an example of checking the price prediction of “China Petroleum” (601857) at a conference held in May 2008 are given.