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In quantitative finance, it is often necessary to analyze the distribution of the sum of specific functions of observed values at discrete points of an underlying process. Examples include the probability density function, the hedging…

Statistical Finance · Quantitative Finance 2019-08-15 Jong Jun Park , Kyungsub Lee

A fast method of an arbitrary high order for approximating volume potentials is proposed, which is effective also in high dimensional cases. Basis functions introduced in the theory of approximate approximations are used. Results of…

Numerical Analysis · Mathematics 2009-11-04 Flavia Lanzara , Vladimir Maz'ya , Gunther Schmidt

It has recently been shown that a free energy for Baxter's sticky hard sphere fluid is uniquely defined within the framework of fundamental measure theory (FMT) for the inhomogeneous hard sphere fluid, provided that it obeys scaled-particle…

Soft Condensed Matter · Physics 2015-06-03 Hendrik Hansen-Goos , Mark A. Miller , J. S. Wettlaufer

The mathematical theory of a novel variational approximation scheme for general second and fourth order partial differential equations \begin{equation}\label{eq: A} \partial_t u - \nabla\cdot\Big(u\nabla\frac{\delta\phi}{\delta…

Analysis of PDEs · Mathematics 2023-10-19 Florentine Fleißner

This paper investigates the universal approximation capabilities of Hamiltonian Deep Neural Networks (HDNNs) that arise from the discretization of Hamiltonian Neural Ordinary Differential Equations. Recently, it has been shown that HDNNs…

Machine Learning · Computer Science 2023-05-31 Muhammad Zakwan , Massimiliano d'Angelo , Giancarlo Ferrari-Trecate

The latter author, together with collaborators, proposed a numerical scheme to calculate the price of barrier options. The scheme is based on a symmetrization of diffusion process. The present paper aims to give a mathematical credit to the…

Computational Finance · Quantitative Finance 2012-06-27 Jiro Akahori , Yuri Imamura

Density-functional theory is applied to compute the ground-state energies of quantum hard-sphere solids. The modified weighted-density approximation is used to map both the Bose and the Fermi solid onto a corresponding uniform Bose liquid,…

Statistical Mechanics · Physics 2009-10-30 A. R. Denton , P. Nielaba , N. W. Ashcroft

We showcase the advantages of orbital-free density-potential functional theory (DPFT), a more flexible variant of Hohenberg-Kohn density functional theory. DPFT resolves the usual trouble with the gradient-expanded kinetic energy functional…

Quantum Gases · Physics 2021-06-16 Martin-Isbjörn Trappe , Jun Hao Hue , Berthold-Georg Englert

This paper develops a new efficient scheme for approximations of expectations of the solutions to stochastic differential equations (SDEs). In particular, we present a method for connecting approximate operators based on an asymptotic…

Probability · Mathematics 2016-05-05 Akihiko Takahashi , Toshihiro Yamada

This work addresses the problem of pricing American basket options in a multivariate setting, which includes among others, the Bachelier and the Black-Scholes models. In high dimensions, nonlinear partial differential equation methods for…

Computational Finance · Quantitative Finance 2017-06-05 Christian Bayer , Juho Häppölä , Raúl Tempone

We study approximations to a class of vector-valued equations of Burgers type driven by a multiplicative space-time white noise. A solution theory for this class of equations has been developed recently in [Hairer, Weber, Probab. Theory…

Probability · Mathematics 2016-06-02 Martin Hairer , Jan Maas , Hendrik Weber

Approximating functions by a linear span of truncated basis sets is a standard procedure for the numerical solution of differential and integral equations. Commonly used concepts of approximation methods are well-posed and convergent, by…

Numerical Analysis · Mathematics 2022-12-14 Yahya Saleh , Armin Iske , Andrey Yachmenev , Jochen Küpper

Spread options are a fundamental class of derivative contract written on multiple assets, and are widely used in a range of financial markets. There is a long history of approximation methods for computing such products, but as yet there is…

Computational Finance · Quantitative Finance 2009-02-23 T. R. Hurd , Zhuowei Zhou

We present a set of benchmark calculations for the Kohn-Sham elastic transmission function of five representative single-molecule junctions. The transmission functions are calculated using two different density functional theory (DFT)…

Mesoscale and Nanoscale Physics · Physics 2009-11-13 M. Strange , I. S. Kristensen , K. S. Thygesen

A computational technique borrowed from the physical sciences is introduced to obtain accurate closed-form approximations for the transition probability of arbitrary diffusion processes. Within the path integral framework the same technique…

Physics and Society · Physics 2008-12-10 Luca Capriotti

We present an accurate and efficient real-space formulation of the Hellmann-Feynman stress tensor for $\mathcal{O}(N)$ Kohn-Sham density functional theory (DFT). While applicable at any temperature, the formulation is most efficient at high…

Computational Physics · Physics 2020-08-26 Abhiraj Sharma , Sebastien Hamel , Mandy Bethkenhagen , John E. Pask , Phanish Suryanarayana

We introduce a spectral density functional theory which can be used to compute energetics and spectra of real strongly--correlated materials using methods, algorithms and computer programs of the electronic structure theory of solids. The…

Strongly Correlated Electrons · Physics 2009-11-10 S. Y. Savrasov , G. Kotliar

In the present paper, an expansion of the transition density of Hyperbolic Brownian motion with drift is given, which is potentially useful for pricing and hedging of options under stochastic volatility models. We work on a condition on the…

Computational Finance · Quantitative Finance 2017-05-03 Yuuki Ida , Yuri Imamura

We prove hypercontractive inequalities on high dimensional expanders. As in the settings of the p-biased hypercube, the symmetric group, and the Grassmann scheme, our inequalities are effective for global functions, which are functions that…

Computational Complexity · Computer Science 2021-12-28 Tom Gur , Noam Lifshitz , Siqi Liu

Near-critical thermodynamics in the hard-sphere (1,1) electrolyte is well described, at a classical level, by Debye-Hueckel (DH) theory with (+,-) ion pairing and dipolar-pair-ionic-fluid coupling. But DH-based theories do not address…

Condensed Matter · Physics 2009-10-28 Benjamin P. Lee , Michael E. Fisher