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This paper considers the single factor Heath-Jarrow-Morton model for the interest rate curve with stochastic volatility. Its natural formulation, described in terms of stochastic differential equations, is solved through Monte Carlo…

Computational Finance · Quantitative Finance 2012-08-02 Eusebio Valero , Manuel Torrealba , Lucas Lacasa , François Fraysse

The goal of the present paper is to propose an enhanced ordinary differential equations solver by exploitation of the powerful equivalence method of \'Elie Cartan. This solver returns a target equation equivalent to the equation to be…

Differential Geometry · Mathematics 2008-05-31 Raouf Dridi , Michel Petitot

Symmetry methods are by now recognized as one of the main tools to attack deterministic differential equations (both ODEs and PDEs); the situation is quite different for what concerns stochastic differential equations: here, symmetry…

Mathematical Physics · Physics 2007-05-23 Giuseppe Gaeta

We derive the fluctuation-dissipation relation and explore its connection with the equipartition theorem and Maxwell-Boltzmann statistics through the use of different stochastic analytical techniques. Our first approach is the theory of…

Probability · Mathematics 2021-01-08 Carlos Escudero

A stochastic differential equation with coefficients defined in a scale of Hilbert spaces is considered. The existence, uniqueness and path-continuity of infinite-time solutions is proved by an extension of the Ovsyannikov method. This…

Functional Analysis · Mathematics 2021-10-26 Georgy Chargaziya , Alexei Daletskii

A spectral approach to building the exterior calculus in manifold learning problems is developed. The spectral approach is shown to converge to the true exterior calculus in the limit of large data. Simultaneously, the spectral approach…

Differential Geometry · Mathematics 2020-02-24 Tyrus Berry , Dimitrios Giannakis

In this paper we introduce a stochastic integral with respect to the solution X of the fractional heat equation on [0,1], interpreted as a divergence operator. This allows to use the techniques of the Malliavin calculus in order to…

Probability · Mathematics 2007-06-13 Jorge A. Leon , Samy Tindel

Numerical methods for stochastic differential equations with non-globally Lipschitz coefficients are currently studied intensively. This article gives an overview of our work for the case that the drift coefficient is potentially…

Numerical Analysis · Mathematics 2021-04-26 Michaela Szölgyenyi

We develop the rough path counterpart of It\^o stochastic integration and - differential equations driven by general semimartingales. This significantly enlarges the classes of (It\^o / forward) stochastic differential equations treatable…

Probability · Mathematics 2017-09-18 Peter K. Friz , Huilin Zhang

In this paper a drift-randomized Milstein method is introduced for the numerical solution of non-autonomous stochastic differential equations with non-differentiable drift coefficient functions. Compared to standard Milstein-type methods we…

Numerical Analysis · Mathematics 2018-12-12 Raphael Kruse , Yue Wu

The aim of the present paper is to propose an algorithm for a new ODE--solver which should improve the abilities of current solvers to handle second order differential equations. The paper provides also a theoretical result revealing the…

Symbolic Computation · Computer Science 2007-08-01 R. Dridi , M. Petitot

This work deals with the one-dimensional Stefan problem with a general time-dependent boundary condition at the fixed boundary. Stochastic solutions are obtained using discrete random walks, and the results are compared with analytic…

Analysis of PDEs · Mathematics 2023-02-06 M. Ogren

We propose to study a new type of Backward stochastic differential equations driven by a family of It\^o's processes. We prove existence and uniqueness of the solution, and investigate stability and comparison theorem.

Probability · Mathematics 2015-11-03 Abdelkarem Berkaoui , El Hassan Essaky

A representation formula for solutions of stochastic partial differential equations with Dirichlet boundary conditions is proved. The scope of our setting is wide enough to cover the general situation when the backward characteristics that…

Probability · Mathematics 2019-03-14 Máté Gerencsér , István Gyöngy

In this article, we introduce the notion of stochastic symmetry of a differential equation. It consists in a stochastic flow that acts over a solution of a differential equation and produces another solution of the same equation. In the…

Probability · Mathematics 2011-12-19 Pedro J. Catuogno , Luis R. Lucinger

Stochastic diffusion equations are crucial for modeling a range of physical phenomena influenced by uncertainties. We introduce the generalized finite difference method for solving these equations. Then, we examine its consistency,…

Numerical Analysis · Mathematics 2024-11-22 Faezeh Nassajian Mojarrad

We investigate existence and uniqueness of strong solutions of mean-field stochastic differential equations with irregular drift coefficients. Our direct construction of strong solutions is mainly based on a compactness criterion employing…

Probability · Mathematics 2018-07-02 Martin Bauer , Thilo Meyer-Brandis , Frank Proske

We use methods from exterior differential systems (EDS) to develop a geometric theory of scalar, first-order Lagrangian functionals and their associated Euler-Lagrange PDEs, subject to contact transformations. The first chapter contains an…

Differential Geometry · Mathematics 2007-05-23 Robert L. Bryant , Phillip A. Griffiths , Daniel A. Grossman

The aim of this paper is to develop a sequence of discrete approximations to a one-dimensional It\^o diffusion that almost surely converges to a weak solution of the given stochastic differential equation. Under suitable conditions, the…

Probability · Mathematics 2014-03-27 John van der Hoek , Tamas Szabados

A peculiar feature of It\^o's calculus is that it is an integral calculus that gives no explicit derivative with a systematic differentiation theory counterpart, as in elementary calculus. So, can we define a pathwise stochastic derivative…

Probability · Mathematics 2010-05-25 Hassan Allouba