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We obtain option pricing formulas for stock price models in which the drift and volatility terms are functionals of a continuous history of the stock prices. That is, the stock dynamics follows a nonlinear stochastic functional differential…

Pricing of Securities · Quantitative Finance 2020-11-17 Flavia Sancier , Salah Mohammed

A global optimization approach for solving non-monotone equilibrium problems (EPs) is proposed. The class of (regularized) gap functions is used to reformulate any EP as a constrained global optimization program and some bounds on the…

Optimization and Control · Mathematics 2020-02-28 Stefano Lucidi , Mauro Passacantando , Francesco Rinaldi

This paper deals with the regularity of solutions of the Hamilton-Jacobi Inequality which arises in H-infinity control. It shows by explicit counterexamples that there are gaps between existence of continuous and locally Lipschitz (positive…

Optimization and Control · Mathematics 2007-05-23 Lionel Rosier , Eduardo D. Sontag

The existence of the unique strong solution for a class of stochastic differential equations with non-Lipschitz coefficients was established recently. In this paper, we shall investigate the dependence with respect to the initial values. We…

Probability · Mathematics 2007-05-23 Shizan Fang , Tusheng Zhang

Since it is difficult to implement implicit schemes on the infinite-dimensional space, we aim to develop the explicit numerical method for approximating super-linear stochastic functional differential equations (SFDEs). Precisely, borrowing…

Numerical Analysis · Mathematics 2022-08-23 Xiaoyue Li , Xuerong Mao , Guoting Song

We consider strong convergence of the finite differences approximation in space for stochastic reaction diffusion equations with multiplicative noise under a one-sided Lipschitz condition only. We derive convergence with an implicit rate…

Probability · Mathematics 2015-04-17 Martin Sauer , Wilhelm Stannat

In this paper, we present a general framework for solving stochastic functional differential equations in infinite dimensions in the sense of martingale solutions, which can be applied to a large class of SPDE with finite delays, e.g.…

Probability · Mathematics 2014-07-25 Michael Rockner , Rongchan Zhu , Xiangchan Zhu

In traditional work on numerical schemes for solving stochastic differential equations (SDEs), it is usually assumed that the coefficients are globally Lipschitz. This assumption has been used to establish a powerful analysis of the…

Probability · Mathematics 2017-09-15 Philip Protter , Lisha Qiu , Jaime San Martin

We consider a stochastic functional differential equation with an arbitrary Lipschitz diffusion coefficient depending on the past. The drift part contains a term with superlinear growth and satisfying a dissipativity condition. We prove…

Analysis of PDEs · Mathematics 2009-03-12 Abdelhadi Es--Sarhir , Onno van Gaans , Michael Scheutzow

Using a temporally weighted norm we first establish a result on the global existence and uniqueness of solutions for Caputo fractional stochastic differential equations of order $\alpha\in(\frac{1}{2},1)$ whose coefficients satisfy a…

Classical Analysis and ODEs · Mathematics 2018-08-24 T. S. Doan , P. T. Huong , P. E. Kloeden , H. T. Tuan

The performance of standard stochastic approximation implementations can vary significantly based on the choice of the steplength sequence, and in general, little guidance is provided about good choices. Motivated by this gap, in the first…

Optimization and Control · Mathematics 2015-03-19 Farzad Yousefian , Angelia Nedić , Uday V. Shanbhag

The rates of strong convergence for various approximation schemes are investigated for a class of stochastic differential equations (SDEs) which involve a random time change given by an inverse subordinator. SDEs to be considered are unique…

Probability · Mathematics 2021-03-29 Sixian Jin , Kei Kobayashi

In answer to Ko's question raised in 1983, we show that an initial value problem given by a polynomial-time computable, Lipschitz continuous function can have a polynomial-space complete solution. The key insight is simple: the Lipschitz…

Computational Complexity · Computer Science 2010-07-19 Akitoshi Kawamura

This paper studies dynamic stochastic optimization problems parametrized by a random variable. Such problems arise in many applications in operations research and mathematical finance. We give sufficient conditions for the existence of…

Optimization and Control · Mathematics 2011-05-06 Teemu Pennanen , Ari-Pekka Perkkiö

We consider stochastic optimization problems involving an expected value of a nonlinear function of a base random vector and a conditional expectation of another function depending on the base random vector, a dependent random vector, and…

Optimization and Control · Mathematics 2024-05-20 Andrzej Ruszczyński , Shangzhe Yang

We introduce an explicit, adaptive time-stepping scheme for the simulation of SPDEs with one-sided Lipschitz drift coefficients. Strong convergence rates are proven for the full space-time discretisation with multiplicative trace-class…

Numerical Analysis · Mathematics 2019-08-27 Stuart Campbell , Gabriel Lord

We use a coupling method for functional stochastic differential equations with bounded memory to establish an analogue of Wang's dimension-free Harnack inequality \cite{MR1481127}. The strong Feller property for the corresponding segment…

Probability · Mathematics 2009-10-26 A. Es-Sarhir , M-K. von Renesse , M. Scheutzow

Sparse functional/longitudinal data have attracted widespread interest due to the prevalence of such data in social and life sciences. A prominent scenario where such data are routinely encountered are accelerated longitudinal studies,…

Methodology · Statistics 2024-06-24 Yidong Zhou , Hans-Georg Müller

In this paper, we investigate new sufficient conditions to ensure the existence of a unique global strong solution of stochastic differential equations with jumps. By using Euler approximation and by utilising a new test function…

Probability · Mathematics 2014-04-15 Guangqiang Lan , Jiang-Lun Wu

A system of partial differential equations representing stochastic neural fields was recently proposed with the aim of modelling the activity of noisy grid cells when a mammal travels through physical space. The system was rigorously…

Analysis of PDEs · Mathematics 2023-07-18 José Antonio Carrillo , Pierre Roux , Susanne Solem