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The binomial tree method and the Monte Carlo (MC) method are popular methods for solving option pricing problems. However in both methods there is a trade-off between accuracy and speed of computation, both of which are important in…

Computational Finance · Quantitative Finance 2022-02-03 Yen Thuan Trinh , Bernard Hanzon

A likelihood analysis of the observables in deeply virtual exclusive meson production off a proton target is presented. We consider the unpolarized process for which the largest amount of data with all the kinematic dependences are…

High Energy Physics - Phenomenology · Physics 2026-05-19 Saraswati Pandey , Douglas Q. Adams , Simonetta Liuti

This survey gives an overview of Monte Carlo methodologies using surrogate models, for dealing with densities which are intractable, costly, and/or noisy. This type of problem can be found in numerous real-world scenarios, including…

Machine Learning · Computer Science 2025-09-24 F. Llorente , L. Martino , J. Read , D. Delgado

Weighted Monte Carlo prices exotic options calibrating the probabilities of previously generated paths by a regular Monte Carlo to fit a set of option premiums. When only vanilla call and put options and forward prices are considered, the…

Computational Finance · Quantitative Finance 2011-02-18 Alberto Elices , Eduard Giménez

While multilevel Monte Carlo (MLMC) methods for the numerical approximation of partial differential equations with random coefficients enjoy great popularity, combinations with spatial adaptivity seem to be rare. We present an adaptive MLMC…

Numerical Analysis · Mathematics 2017-12-20 Ralf Kornhuber , Evgenia Youett

This paper considers the classical problem of sampling with Monte Carlo methods a target rare event distribution defined by a score function that is very expensive to compute. We assume we can build using evaluations of the true score, an…

Computation · Statistics 2024-10-25 Frédéric Cérou , Patrick Héas , Mathias Rousset

Estimating the dependency of variables is a fundamental task in data analysis. Identifying the relevant attributes in databases leads to better data understanding and also improves the performance of learning algorithms, both in terms of…

Machine Learning · Computer Science 2018-10-05 Edouard Fouché , Klemens Böhm

Conventional Monte Carlo simulations are stochastic in the sense that the acceptance of a trial move is decided by comparing a computed acceptance probability with a random number, uniformly distributed between 0 and 1. Here we consider the…

Statistical Mechanics · Physics 2018-05-24 Daan Frenkel , K. Julian Schrenk , Stefano Martiniani

This article considers the sequential Monte Carlo (SMC) approximation of ratios of normalizing constants associated to posterior distributions which in principle rely on continuum models. Therefore, the Monte Carlo estimation error and the…

Computation · Statistics 2016-03-04 Pierre Del Moral , Ajay Jasra , Kody Law , Yan Zhou

Extracting maximal information from experimental data requires access to the likelihood function, which however is never directly available for complex experiments like those performed at high energy colliders. Theoretical predictions are…

High Energy Physics - Phenomenology · Physics 2023-08-11 Siyu Chen , Alfredo Glioti , Giuliano Panico , Andrea Wulzer

Calculating averages with respect to multimodal probability distributions is often necessary in applications. Markov chain Monte Carlo (MCMC) methods to this end, which are based on time averages along a realization of a Markov process…

Methodology · Statistics 2023-07-24 M. Chak , T. Lelièvre , G. Stoltz , U. Vaes

The Dynamic Monte Carlo (DMC) method is an established molecular simulation technique for the analysis of the dynamics in colloidal suspensions. An excellent alternative to Brownian Dynamics or Molecular Dynamics simulation, DMC is…

Soft Condensed Matter · Physics 2020-07-15 Fabián A. García Daza , Alejandro Cuetos , Alessandro Patti

Importance sampling has become an important tool for the computation of tail-based risk measures. Since such quantities are often determined mainly by rare events standard Monte Carlo can be inefficient and importance sampling provides a…

Probability · Mathematics 2013-06-29 Pierre Nyquist

We introduce a significant improvement for a relatively new machine learning method called Transformation-Based Learning. By applying a Monte Carlo strategy to randomly sample from the space of rules, rather than exhaustively analyzing all…

cmp-lg · Computer Science 2007-05-23 Ken Samuel

Sequential Monte Carlo (SMC) methods are a class of techniques to sample approximately from any sequence of probability distributions using a combination of importance sampling and resampling steps. This paper is concerned with the…

Statistics Theory · Mathematics 2012-03-05 Pierre Del Moral , Arnaud Doucet , Ajay Jasra

In this work, we introduce a Monte Carlo method for the dynamic hedging of general European-type contingent claims in a multidimensional Brownian arbitrage-free market. Based on bounded variation martingale approximations for…

Pricing of Securities · Quantitative Finance 2013-08-20 Dorival Leão , Alberto Ohashi , Vinicius Siqueira

Importance sampling (IS) is commonly used for cross validation (CV) in Bayesian models, because it only involves reweighting existing posterior draws without needing to re-estimate the model by re-running Markov chain Monte Carlo (MCMC).…

Computation · Statistics 2025-08-12 Geonhee Han , Andrew Gelman

Demand for high-performance, robust, and safe autonomous systems has grown substantially in recent years. These objectives motivate the desire for efficient safety-theoretic reasoning that can be embedded in core decision-making tasks such…

Robotics · Computer Science 2022-12-27 Kristoffer M. Frey , Ted J. Steiner , Jonathan P. How

We propose a modified coupled cluster Monte Carlo algorithm that stochastically samples connected terms within the truncated Baker--Campbell--Hausdorff expansion of the similarity transformed Hamiltonian by construction of coupled cluster…

Chemical Physics · Physics 2019-06-19 Charles J. C. Scott , Roberto Di Remigio , T. Daniel Crawford , Alex J. W. Thom

Safety exploration can be regarded as a constrained Markov decision problem where the expected long-term cost is constrained. Previous off-policy algorithms convert the constrained optimization problem into the corresponding unconstrained…

Machine Learning · Computer Science 2024-10-28 Hengrui Zhang , Youfang Lin , Sheng Han , Shuo Wang , Kai Lv