Substituting this back into the nonlinear Schr�dinger equation gives a perturbation equation of the form
2.
The small perturbation equations of motion are:
3.
Instability can now be discovered by searching for solutions of the perturbation equation which grow exponentially.
4.
The perturbation equation does require externally calculated risk numbers, but this may not be a major obstacle, since these quantities are readily available from the same sources as yields and prices.