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We consider the problem of finding model-independent bounds on the price of an Asian option, when the call prices at the maturity date of the option are known. Our methods differ from most approaches to model-independent pricing in that we…

Pricing of Securities · Quantitative Finance 2016-07-21 Alexander M. G. Cox , Sigrid Källblad

Fourth order curvature driven interface evolution equations frequently appear in the natural sciences. Often axisymmetric geometries are of interest, and in this situation numerical computations are much more efficient. We will introduce…

Numerical Analysis · Mathematics 2019-02-13 John W. Barrett , Harald Garcke , Robert Nürnberg

Time evolution of macroscopic systems is re-examined primarily through further analysis and extension of the equation of motion for the density matrix $\rho(t)$. Because $\rho$ contains both classical and quantum-mechanical probabilities it…

Statistical Mechanics · Physics 2009-11-10 W. T. Grandy

This paper introduces a linear state-space model with time-varying dynamics. The time dependency is obtained by forming the state dynamics matrix as a time-varying linear combination of a set of matrices. The time dependency of the weights…

Machine Learning · Statistics 2014-10-06 Jaakko Luttinen , Tapani Raiko , Alexander Ilin

A method for constructing evolution equations admitting a master symmetry is proposed. Several examples illustrating the method are presented. It is also noted that for certain evolution equations master symmetries can be useful for…

Exactly Solvable and Integrable Systems · Physics 2009-11-07 F. Finkel , A. S. Fokas

We propose a general algebraic analytic scheme for the spectral transform of solutions of nonlinear evolution equations. This allows us to give the general integrable evolution corresponding to an arbitrary time and space dependence of the…

solv-int · Physics 2009-10-28 Jerome Leon

A natural example of evolution can be described by a time-dependent two degrees-of-freedom Hamiltonian. We choose the case where initially the Hamiltonian derives from a general cubic potential, the linearised system has frequencies 1 and…

Dynamical Systems · Mathematics 2021-11-03 Ferdinand Verhulst

A theory which describes the share price evolution at financial markets as a continuous-time random walk has been generalized in order to take into account the dependence of waiting times t on price returns x. A joint probability density…

Statistical Mechanics · Physics 2015-06-24 Przemyslaw Repetowicz , Peter Richmond

This paper presents a new prediction model for time series data by integrating a time-varying Geometric Brownian Motion model with a pricing mechanism used in financial engineering. Typical time series models such as Auto-Regressive…

Applications · Statistics 2020-01-01 Abdullah AlShelahi , Jingxing Wang , Mingdi You , Eunshin Byon , Romesh Saigal

We present the explicit formulae, describing the structure of symmetries and formal symmetries of any scalar (1+1)-dimensional evolution equation. Using these results, the formulae for the leading terms of commutators of two symmetries and…

solv-int · Physics 2017-09-29 Artur G. Sergyeyev

An unsteady problem is considered for a space-fractional equation in a bounded domain. A first-order evolutionary equation involves a fractional power of an elliptic operator of second order. Finite element approximation in space is…

Numerical Analysis · Computer Science 2018-05-09 Petr N. Vabishchevich

We study diffusion-type equations supported on structures that are randomly varying in time. After settling the issue of well-posedness, we focus on the asymptotic behavior of solutions: our main result gives sufficient conditions for…

Dynamical Systems · Mathematics 2020-04-28 Stefano Bonaccorsi , Francesca Cottini , Delio Mugnolo

We introduce a class of randomly time-changed fast mean-reverting stochastic volatility models and, using spectral theory and singular perturbation techniques, we derive an approximation for the prices of European options in this setting.…

Pricing of Securities · Quantitative Finance 2012-05-15 Matthew Lorig

To monitor risk in temporal financial networks, we need to understand how individual behaviours affect the global evolution of networks. Here we define a structural importance metric - which we denote as $l_e$ - for the edges of a network.…

Computational Engineering, Finance, and Science · Computer Science 2020-12-24 Isobel Seabrook , Paolo Barucca , Fabio Caccioli

The goal of this work is to analyze a model for the rate-independent evolution of sets with finite perimeter. The evolution of the admissible sets is driven by that of a given time-dependent set, which has to include the admissible sets and…

Analysis of PDEs · Mathematics 2019-03-01 Riccarda Rossi , Ulisse Stefanelli , Marita Thomas

We study the convergence towards the equilibrium for a dissipative and stochastic time-dependent oval billiard. The dynamics of the system is described by using a generic four dimensional nonlinear map for the variables: the angular…

Chaotic Dynamics · Physics 2016-02-23 Marcus Vinicius Camillo Galia , Diego F. M. Oliveira , Edson D. Leonel

Evolutionary game dynamics in structured populations has been extensively explored in past decades. However, most previous studies assume that payoffs of individuals are fully determined by the strategic behaviors of interacting parties and…

Populations and Evolution · Quantitative Biology 2019-06-19 Qi Su , Lei Zhou , Long Wang

Time dependence is a universal phenomenon in nature, and a variety of mathematical models in terms of dynamical systems have been developed to understand the time-dependent behavior of real-world problems. Originally constructed to analyze…

Algebraic Topology · Mathematics 2018-02-14 Zixuan Cang , Elizabeth Munch , Guo-Wei Wei

It is demonstrated how a convenient choice of the mathematical structure of the quantum cosmology superspace, precisely the definition of a convenient regular state superspace and the restriction of the dynamics to this space, yields…

General Relativity and Quantum Cosmology · Physics 2010-11-19 Mario Castagnino

In this paper we study the reductions of evolutionary PDEs on the manifold of the stationary points of time--dependent symmetries. In particular we describe how that the finite dimensional Hamiltonian structure of the reduced system is…

Differential Geometry · Mathematics 2007-05-23 Monica Ugaglia