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In this article we present new results for the pricing of arithmetic Asian options within a Black-Scholes context. To derive these results we make extensive use of the local scale invariance that exists in the theory of contingent claim…

Statistical Mechanics · Physics 2008-12-02 Jiri Hoogland , Dimitri Neumann

We present a numerical approach for solving the free boundary problem for the Black-Scholes equation for pricing American style of floating strike Asian options. A fixed domain transformation of the free boundary problem into a parabolic…

Computational Finance · Quantitative Finance 2011-06-02 J. D. Kandilarov , D. Sevcovic

We recently proposed a method for estimation of states and parameters in stochastic differential equations, which included intermediate time points between observations and used the Laplace approximation to integrate out these intermediate…

Probability · Mathematics 2025-04-01 Uffe Høgsbro Thygesen

We propose the approximate Laplace approximation (ALA) to evaluate integrated likelihoods, a bottleneck in Bayesian model selection. The Laplace approximation (LA) is a popular tool that speeds up such computation and equips strong model…

Computation · Statistics 2021-10-07 David Rossell , Oriol Abril , Anirban Bhattacharya

New high statistics data from the second generation of ultrarelativistic heavy-ion experiments open up new possibilities in terms of data analysis. To fully utilize the potential we propose to analyze the $m_\perp$-spectra of hadrons using…

Nuclear Theory · Physics 2009-10-28 Ekkard Schnedermann

We present an extension of an algorithm for the classical scalar $p$-Laplace Dirichlet problem to the vector-valued $p$-Laplacian with mixed boundary conditions in order to solve problems occurring in shape optimization using a $p$-harmonic…

Optimization and Control · Mathematics 2022-08-16 Henrik Wyschka , Martin Siebenborn

We represent in this note the solutions of the electronic Schr\"odinger equation as traces of higher-dimensional functions. This allows to decouple the electron-electron interaction potential but comes at the price of a degenerate elliptic…

Mathematical Physics · Physics 2022-08-09 Harry Yserentant

G-expectation, as a sublinear expectation, provides a powerful framework for modeling uncertainty in financial markets. Motivated by the need for robust valuation under model uncertainty, this work develops a unified risk-neutral valuation…

Computational Engineering, Finance, and Science · Computer Science 2026-03-25 Ziting Pei , Xingye Yue , Xiaotao Zheng

We study general properties such as the solution representation of a moving boundary value problem of the Black-Scholes equation, its min-max estimation, lower and upper gradient estimates, and strict monotonicity with respect to the…

Pricing of Securities · Quantitative Finance 2022-03-14 Hyong-Chol O , Tae-Song Choe

In this paper a new method for inverting the Laplace transform from the real axis is formulated. This method is based on a quadrature formula. We assume that the unknown function $f(t)$ is continuous with (known) compact support. An…

Numerical Analysis · Mathematics 2009-11-18 Sapto W. Indratno , A. G. Ramm

We proposed classification models that utilize the result from the Quasi-Reversibility Method, which solves the Black-Scholes equation to forecast the option prices one day in advance. Combining the minimizer from QRM with our machine…

Optimization and Control · Mathematics 2025-01-28 Benjamin Jiang , Matthieu Durieux , Kirill V. Golubnichiy

In this research work, let us focus on the construction of numerical scheme based on radial basis functions finite difference (RBF-FD) method combined with the Laplace transform for the solution of fractional order dispersive wave…

Numerical Analysis · Mathematics 2025-08-15 Hameed Ullah Jan , Marjan Uddin , Irshad Ali Shah , Salam Ullah Khan

In this book, there are five chapters: The Laplace Transform, Systems of Homogeneous Linear Differential Equations (HLDE), Methods of First and Higher Orders Differential Equations, Extended Methods of First and Higher Orders Differential…

History and Overview · Mathematics 2018-07-24 Mohammed K A Kaabar

The efficient inversion of matrix polynomials is a critical challenge in computational mathematics. We design a procedure to determine the inverse of matrices polynomial of multidimensional Laplace matrices. The method is based on…

Numerical Analysis · Mathematics 2026-02-12 Sabia Asghar , Qiyao Peng , Fred Vermolen , Cornelis Vuik

The purpose of this study is twofold. First, we revisit a shape optimization reformulation of a prototypical shape inverse problem and briefly propose a simple yet efficient numerical approach for solving the corresponding minimization…

Analysis of PDEs · Mathematics 2025-06-27 Julius Fergy Tiongson Rabago , Masato Kimura

In this paper we introduce the concept of standardized call function and we obtain a new approximating formula for the Black and Scholes call function through the hyperbolic tangent. This formula is useful for pricing and risk management as…

General Finance · Quantitative Finance 2018-10-11 Michele Mininni , Giuseppe Orlando , Giovanni Taglialatela

In this work, we present a quantum algorithm designed to solve the differential equation used in the pricing of Asian options, in the framework of the Black-Scholes model. Our approach modifies an existing quantum pre-conditioning method…

Quantum Physics · Physics 2025-05-09 Gumaro Rendon , Rutuja Kshirsagar , Quoc Hoan Tran

Walk on Spheres algorithms leverage properties of Brownian Motion to create Monte Carlo estimates of solutions to a class of elliptic partial differential equations. We propose a new caching strategy which leverages the continuity of paths…

Computational Physics · Physics 2025-04-10 Michael Czekanski , Benjamin Faber , Margaret Fairborn , Adelle Wright , David Bindel

The Laplace eigenvalue problem on circular sectors has eigenfunctions with corner singularities. Standard methods may produce suboptimal approximation results. To address this issue, a novel numerical algorithm that enhances standard…

Numerical Analysis · Mathematics 2025-05-16 Thomas Apel , Philipp Zilk

Convolution quadrature (CQ) methods have enjoyed tremendous interest in recent years as an efficient tool for solving time-domain wave problems in unbounded domains via boundary integral equation techniques. In this paper we consider CQ…

Numerical Analysis · Mathematics 2016-03-08 T. Betcke , N. Salles , W. Śmigaj