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We investigate the Longstaff--Schwartz algorithm for American option pricing assuming that both the number of regressors and the number of Monte Carlo paths tend to infinity. Our main results concern extensions, respectively, applications…

Probability · Mathematics 2011-04-07 Stefan Gerhold

The paper estimates the rate of convergence of the weak Euler approximation for the solutions of SDEs with Hoelder continuous coefficients driven by point and martingale measures. The equation considered has a non-degenerate main part whose…

Probability · Mathematics 2010-11-23 R. Mikulevicius , C. Zhang

L\'{e}vy processes with completely monotone jumps appear frequently in various applications of probability. For example, all popular stock price models based on L\'{e}vy processes (such as the Variance Gamma, CGMY/KoBoL and Normal Inverse…

Probability · Mathematics 2016-01-08 Daniel Hackmann , Alexey Kuznetsov

In a high-frequency context, we investigate the efficient estimation of scaling and jump activity parameters for a stochastic differential equation driven by a L{\'e}vy process with both diffusion component and pure-jump component. We first…

Probability · Mathematics 2025-09-08 Elise Bayraktar , Emmanuelle Clément

In this paper, we aim to study the diffusion approximation for multi-scale McKean-Vlasov stochastic differential equations. More precisely, we prove the weak convergence of slow process $X^\varepsilon$ in $C([0,T];\mathbb{R}^n)$ towards the…

Probability · Mathematics 2022-06-07 Wei Hong , Shihu Li , Xiaobin Sun

We extend the taming techniques for explicit Euler approximations of stochastic differential equations (SDEs) driven by L\'evy noise with super-linearly growing drift coefficients. Strong convergence results are presented for the case of…

Probability · Mathematics 2015-01-23 Konstantinos Dareiotis , Chaman Kumar , Sotirios Sabanis

The equation with the time fractional substantial derivative and space fractional derivative describes the distribution of the functionals of the L\'evy flights; and the equation is derived as the macroscopic limit of the continuous time…

Numerical Analysis · Mathematics 2015-04-27 Minghua Chen , Weihua Deng

This manuscript is dedicated to the numerical approximation of super-linear slow-fast stochastic differential equations (SFSDEs). Borrowing the heterogeneous multiscale idea, we propose an explicit multiscale Euler-Maruyama scheme suitable…

Numerical Analysis · Mathematics 2025-03-18 Yuanping Cui , Xiaoyue Li , Xuerong Mao

In this paper, we study functional type weak approximation of weak solutions of stochastic functional differential equations by means of the Euler--Maruyama scheme. Under mild assumptions on the coefficients, we provide a quantitative error…

Probability · Mathematics 2024-12-25 Yushi Hamaguchi , Dai Taguchi

Using key tools such as It\^o formula for general semi-martingales, moments estimates for L\'{e}vy-type stochastic integrals and properties of regular varying functions we find conditions under which solutions of stochastic differential…

Probability · Mathematics 2024-02-09 I. Orlovskyi , F. Proske , O. Tymoshenko

In the work asymptotic analysis of the problem of large deviations for random evolutions with independent increments in the circuit of L\'{e}vy approximation is carried out. Large deviations for random evolutions in the circuit of Levy…

Probability · Mathematics 2011-12-30 Igor V. Samoilenko

This work focuses on multivalued stochastic differential equations with jumps. First, by employing the weak convergence approach, we establish the Freidlin-Wentzell uniform large deviation principle and the Dembo-Zeitouni uniform large…

Probability · Mathematics 2025-12-23 Huijie Qiao

General elliptic equations with spatially discontinuous diffusion coefficients may be used as a simplified model for subsurface flow in heterogeneous or fractured porous media. In such a model, data sparsity and measurement errors are often…

Numerical Analysis · Mathematics 2022-08-29 Andrea Barth , Robin Merkle

The optimal dividend problem by De Finetti (1957) has been recently generalized to the spectrally negative L\'evy model where the implementation of optimal strategies draws upon the computation of scale functions and their derivatives. This…

Computational Finance · Quantitative Finance 2010-11-23 Masahiko Egami , Kazutoshi Yamazaki

In this paper we deal with pointwise approximation of solutions of stochastic differential equations (SDEs) driven by infinite dimensional Wiener process with additional jumps generated by Poisson random measure. The further investigations…

Probability · Mathematics 2022-05-04 Paweł Przybyłowicz , Michał Sobieraj , Łukasz Stȩpień

In this paper we study jump-diffusion stochastic differential equations (SDEs) with a discontinuous drift coefficient and a possibly degenerate diffusion coefficient. Such SDEs appear in applications such as optimal control problems in…

Numerical Analysis · Mathematics 2021-01-15 Paweł Przybyłowicz , Michaela Szölgyenyi

Rio gave a concise bound for the central limit theorem in the Vaserstein distances, which is a ratio between some higher moments and some powers of the variance. As a corollary, it gives an estimate for the normal approximation of the small…

Probability · Mathematics 2019-10-15 Xiling Zhang

We present a method for approximating solutions of Stochastic Differential Equations (SDEs) with arbitrary rates. This approximation is derived for bounded and measurable test functions. Specifically, we demonstrate that, leveraging the…

Probability · Mathematics 2024-03-27 Clément Rey

We introduce a semi-implicit Milstein approximation scheme for some class of non-colliding particle systems modeled by systems of stochastic differential equations with non-constant diffusion coefficients. We show that the scheme converges…

Probability · Mathematics 2019-08-13 Hoang-Long Ngo , Duc-Trong Luong

We study the error between the exact solution and its Euler-Maruyama approximation in temporal-spatial H\"older-norms for L\'evy-driven stochastic differential equations.

Probability · Mathematics 2026-05-12 Vu Thi Hue , Ngoc Khue Tran , Hoang-Long Ngo
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