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We consider closed-form approximations for European put option prices within the Heston and GARCH diffusion stochastic volatility models with time-dependent parameters. Our methodology involves writing the put option price as an expectation…

Mathematical Finance · Quantitative Finance 2024-02-06 Kaustav Das , Nicolas Langrené

A general theory of stochastic extensive forms is developed to bridge two concepts of information flow: decision trees and refined partitions on the one side, filtrations from probability theory on the other. Instead of the traditional…

Theoretical Economics · Economics 2024-11-27 E. Emanuel Rapsch

The Becker-D\"oring equations are an infinite dimensional system of ordinary differntial equations describing coagulation/fragmentation processes of species of integer sizes. Formal Taylor expansions motivate that its solution should be…

Classical Analysis and ODEs · Mathematics 2019-02-22 Gabriel Stoltz , Pierre Terrier

A new method is described for constructing a generalized solution for stochastic differential equations. The method is based on the Cameron-Martin version of the Wiener Chaos expansion and provides a unified framework for the study of…

Probability · Mathematics 2007-05-23 S. V. Lototsky , B. L. Rozovskii

A stochastic version of the Brusselator model is proposed and studied via the system size expansion. The mean-field equations are derived and shown to yield to organized Turing patterns within a specific parameters region. When determining…

Statistical Mechanics · Physics 2015-05-14 Tommaso Biancalani , Duccio Fanelli , Francesca Di Patti

We deal with the problem of optimal estimation of the linear functionals constructed from unobserved values of a continuous time stochastic process with periodically correlated increments based on past observations of this process. To solve…

Statistics Theory · Mathematics 2023-04-25 Maksym Luz , Mikhail Moklyachuk

A simple version for the extension of the Taylor theorem to the operator functions was found. The expansion was done with respect to a value given by a diagonal matrix for the non-commutative case, and the coefficients are given both by…

Mathematical Physics · Physics 2007-05-23 Ioan Sturzu

A newly introduced method called Taylor-based Optimized Recursive Extended Exponential Smoothed Neural Networks Forecasting method is applied and extended in this study to forecast numerical values. Unlike traditional forecasting techniques…

Neural and Evolutionary Computing · Computer Science 2018-11-02 Emna Krichene , Wael Ouarda , Habib Chabchoub , Adel M. Alimi

The aim of this paper is to present an elementary computable theory of probability, random variables and stochastic processes. The probability theory is baed on existing approaches using valuations and lower integrals. Various approaches to…

Probability · Mathematics 2015-10-14 Pieter Collins

We develop a convergent variational perturbation theory for the frequency of time-periodic solutions of nonlinear dynamical systems. The power of the theory is illustrated by applying it to the Duffing oscillator.

Mathematical Physics · Physics 2009-11-07 Axel Pelster , Hagen Kleinert , Michael Schanz

We present a Bayesian non-parametric way of inferring stochastic differential equations for both regression tasks and continuous-time dynamical modelling. The work has high emphasis on the stochastic part of the differential equation, also…

Machine Learning · Statistics 2020-06-29 Martin Jørgensen , Marc Peter Deisenroth , Hugh Salimbeni

Stochastic parameterizations are used in numerical weather prediction and climate modeling to help capture the uncertainty in the simulations and improve their statistical properties. Convergence issues can arise when time integration…

Numerical Analysis · Mathematics 2020-06-24 Panos Stinis , Huan Lei , Jing Li , Hui Wan

The article is devoted to the developement of the method of expansion and mean-square approximation of iterated Ito stochastic integrals based on generalized multiple Fourier series converging in the sense of norm in the space $L_2([t,…

Probability · Mathematics 2026-02-17 Dmitriy F. Kuznetsov

In this work, we explore a time-fractional diffusion equation of order $\alpha \in (0,1)$ with a stochastic diffusivity parameter. We focus on efficient estimation of the expected values (considered as an infinite dimensional integral on…

Numerical Analysis · Mathematics 2024-09-04 Josef Dick , Hecong Gao , William McLean , Kassem Mustapha

This paper investigates the errors of the solutions as well as the shadowing property of a class of nonlinear differential equations which possess unique solutions on a certain interval for any admissible initial conditions. The class of…

Classical Analysis and ODEs · Mathematics 2013-10-01 M. De la Sen

We describe how to solve the problem of Taylor dispersion in the presence of absorbing boundaries using an exact stochastic formulation. In addition to providing a clear stochastic picture of Taylor dispersion, our method leads to…

Statistical Mechanics · Physics 2013-11-25 Rudro R. Biswas , Pabitra N. Sen

In this paper we study the {\it pathwise stochastic Taylor expansion}, in the sense of our previous work \cite{Buckdahn_Ma_02}, for a class of It\^o-type random fields in which the diffusion part is allowed to contain both the random field…

Probability · Mathematics 2010-08-20 Rainer Buckdahn , Ingo Bulla , Jin Ma

Stochastic differential equations and the associated partial differential equations are the cornerstone formalism in stochastic control problems. The universality of bilinear stochastic systems can be found in autonomous systems, non-linear…

Optimization and Control · Mathematics 2019-10-31 Sandhya Rathore , Shambhu Nath Sharma , Dani Juricic

Shape derivative is an important analytical tool for studying scattering problems involving perturbations in scatterers. Many applications, including inverse scattering, optimal design, and uncertainty quantification, are based on shape…

Numerical Analysis · Mathematics 2025-04-23 Gang Bao , Jun Lai , Haoran Ma

Truncated Taylor expansions of smooth flow maps are used in Hamilton's principle to derive a multiscale Lagrangian particle representation of ideal fluid dynamics. Numerical simulations for scattering of solutions at one level of truncation…

Fluid Dynamics · Physics 2015-06-18 C. J. Cotter , D. D. Holm , H. O. Jacobs , D. M. Meier