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We present a new method for sampling the Levy area for a two-dimensional Wiener process conditioned on its endpoints. An efficient sampler for the Levy area is required to implement a strong Milstein numerical scheme to approximate the…

Probability · Mathematics 2014-01-21 Simon J. A. Malham , Anke Wiese

L\'evy-driven Ornstein-Uhlenbeck (OU) processes represent an intriguing class of stochastic processes that have garnered interest in the energy sector for their ability to capture typical features of market dynamics. However, in the current…

Computational Finance · Quantitative Finance 2026-05-07 Roberto Baviera , Pietro Manzoni

Fractional generalizations of the Poisson process and branching Furry process are considered. The link between characteristics of the processes, fractional differential equations and Levy stable densities are discussed and used for…

Statistical Mechanics · Physics 2010-02-15 Vladimir V. Uchaikin , Dexter O. Cahoy , Renat T. Sibatov

Tau-leaping is a popular discretization method for generating approximate paths of continuous time, discrete space, Markov chains, notably for biochemical reaction systems. To compute expected values in this context, an appropriate…

Numerical Analysis · Mathematics 2014-08-04 David F. Anderson , Desmond J. Higham , Yu Sun

We use a Monte Carlo method to assemble finite element matrices for polynomial Chaos approximations of elliptic equations with random coefficients. In this approach, all required expectations are approximated by a Monte Carlo method. The…

Numerical Analysis · Mathematics 2017-09-12 Juan Galvis , O. Andres Cuervo

Let $\mathbb{X}=(\mathbb{X}_t)_{t\geq 0}$ be the subdiffusive process defined, for any $t\geq 0$, by $ \mathbb{X}_t = X_{\ell_t}$ where $X=(X_t)_{t\geq 0}$ is a L\'evy process and $\ell_t=\inf \{s>0;\: \mathcal{K}_s>t \}$ with…

Probability · Mathematics 2019-04-08 C. Constantinescu , R. Loeffen , P. Patie

In this paper approximation methods for infinite-dimensional Levy processes, also called (time-dependent) Levy fields, are introduced. For square integrable fields beyond the Gaussian case, it is no longer given that the one-dimensional…

Probability · Mathematics 2017-12-14 Andrea Barth , Andreas Stein

We consider a general class of high order weak approximation schemes for stochastic differential equations driven by L\'evy processes with infinite activity. These schemes combine a compound Poisson approximation for the jump part of the…

Probability · Mathematics 2012-04-24 Arturo Kohatsu-Higa , Salvador Ortiz-Latorre , Peter Tankov

We describe an embarrassingly parallel, anytime Monte Carlo method for likelihood-free models. The algorithm starts with the view that the stochasticity of the pseudo-samples generated by the simulator can be controlled externally by a…

Machine Learning · Computer Science 2015-12-03 Edward Meeds , Max Welling

We briefly review the principles, mathematical bases, numerical shortcuts and applications of fast random walk (FRW) algorithms. This Monte Carlo technique allows one to simulate individual trajectories of diffusing particles in order to…

Computational Physics · Physics 2013-05-01 Denis Grebenkov

Monte Carlo simulations of systems with a complex action are known to be extremely difficult. A new approach to this problem based on a factorization property of distribution functions of observables has been proposed recently. The method…

High Energy Physics - Lattice · Physics 2010-02-03 J. Ambjorn , K. N. Anagnostopoulos , J. Nishimura , J. J. M. Verbaarschot

In this paper we derive the Wiener-Hopf factorization for a finite-state time-inhomogeneous Markov chain. To the best of our knowledge, this study is the first attempt to investigate the Wiener-Hopf factorization for time-inhomogeneous…

Probability · Mathematics 2018-02-13 Tomasz R. Bielecki , Igor Cialenco , Ruoting Gong , Yicong Huang

We present a new efficient method for Monte Carlo simulations of diffusion-reaction processes. First introduced by us in [Phys. Rev. Lett., 97:230602, 2006], the new algorithm skips the traditional small diffusion hops and propagates the…

Materials Science · Physics 2013-05-29 T. Oppelstrup , V. V. Bulatov , A. Donev , M. H. Kalos , G. H. Gilmer , B. Sadigh

Using the Euler--Maruyama technique, we show that a class of Wiener processes exist that are obtained by computing an arbitrary positive power of them. This can be accomplished with a proper set of definitions that makes meaningful the…

Mathematical Physics · Physics 2017-08-28 Marco Frasca , Alfonso Farina

We investigate two hedging problems in exponential L\'evy models. First, we provide an explicit representation for the F\"ollmer--Schweizer decomposition of European type options under mild conditions, which implies a closed-form expression…

Probability · Mathematics 2022-10-04 Nguyen Tran Thuan

We show several results on convergence of the Monte Carlo method applied to consistent approximations of the isentropic Euler system of gas dynamics with uncertain initial data. Our method is based on combination of several new concepts. We…

Numerical Analysis · Mathematics 2024-04-19 Eduard Feireisl , Mária Lukáčová-Medvid'ová , Hana Mizerová , Changsheng Yu

We propose a method for Monte Carlo simulations of systems with a complex action. The method has the advantages of being in principle applicable to any such system and provides a solution to the overlap problem. We apply it in random matrix…

High Energy Physics - Lattice · Physics 2017-08-23 Jan Ambjorn , Konstantinos N. Anagnostopoulos , Jun Nishimura , Jacobus J. M. Verbaarschot

This paper extends the Singular Fourier--Pad\'e (SFP) method proposed by Chan (2018) to pricing/hedging early-exercise options--Bermudan, American and discrete-monitored barrier options--under a L\'evy process. The current SFP method is…

Computational Finance · Quantitative Finance 2019-09-17 Tat Lung , Chan

Simulating samples from arbitrary probability distributions is a major research program of statistical computing. Recent work has shown promise in an old idea, that sampling from a discrete distribution can be accomplished by perturbing and…

Computation · Statistics 2016-04-13 Chris J. Maddison

Solvent-free coarse grained models represent one of the most promising approaches for molecular simulations of mesoscopically large membranes. In these models, the size of the simulated membrane is limited by the slow relaxation time of…

Soft Condensed Matter · Physics 2009-11-13 Oded Farago
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