Optimal Regularity for the No‐Sign Obstacle Problem

In this paper we prove the optimal $C^{1,1}(B_{1/2})$ ‐regularity for a general obstacle‐type problem under the assumption that $f*N$ is $C^{1,1}(B_1)$ , where N is the Newtonian potential. This is the weakest assumption for which one can hope to get $C^{1,1}$ ‐regularity. As a by‐product of the $C^{1,1}$ ‐regularity we are able to prove that, under a standard thickness assumption on the zero set close to a free boundary point $x^0$ , the free boundary is locally a $C^1$ ‐graph close to $x^0$ provided f is Dini. This completely settles the question of the optimal regularity of this problem, which has been the focus of much attention during the last two decades. © 2012 Wiley Periodicals, Inc.