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Maybe this is a stupid question, i dont know, anyhow i recently read this part from an article,

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Can someone explain the part " American put value function ...and the exercise boundary jointly solve a free boundary problem, " i though that the you had to solve for the free boundary problem in order to find the American put value ?

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  • $\begingroup$ What you said is exactly what McKean is saying: we can find the put value if we can solve the following free boundary problem [...]. $\endgroup$ – Alex C Jan 22 '18 at 0:00
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    $\begingroup$ oh he just said it the other way around right? $\endgroup$ – asdf Jan 22 '18 at 0:08

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