Optimal Regularity for the parabolic No-Sign Obstacle Problem

We study the parabolic free boundary problem of obstacle type $$\lap u-\frac{\partial u}{\partial t}= f\chi_{{u\ne 0}}.$$ Under the condition that $f=Hv$ for some function $v$ with bounded second order spatial derivatives and bounded first order time derivative, we establish the same regularity for the solution $u$. Both the regularity and the assumptions are optimal. Using this result and assuming that $f$ is Dini continuous, we prove that the free boundary is, near so called low energy points, a $C^1$ graph. Our result completes the theory for this type of problems for the heat operator.