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We propose a numerical method for the valuation of European-style options under two-asset infinite-activity exponential L\'evy models. Our method extends the effective approach developed by Wang, Wan & Forsyth (2007) for the 1-dimensional…

Numerical Analysis · Mathematics 2026-04-01 Massimiliano Moda , Karel J. in 't Hout , Michèle Vanmaele , Fred Espen Benth

We consider a L\'evy process $Y(t)$ that is not permanently observed, but rather inspected at Poisson($\omega$) moments only, over an exponentially distributed time $T_\beta$ with parameter $\beta$. The focus lies on the analysis of the…

Probability · Mathematics 2021-10-26 Onno Boxma , Michel Mandjes

The tempered fractional diffusion equation could be recognized as the generalization of the classic fractional diffusion equation that the truncation effects are included in the bounded domains. This paper focuses on designing the high…

Numerical Analysis · Mathematics 2020-01-03 Leilei Wei , Yinnian He

We study finite element approximations of the nonhomogeneous Dirichlet problem for the fractional Laplacian. Our approach is based on weak imposition of the Dirichlet condition and incorporating a nonlocal analogous of the normal derivative…

Numerical Analysis · Mathematics 2019-02-05 Gabriel Acosta , Juan Pablo Borthagaray , Norbert Heuer

In this work, we use the integral definition of the fractional Laplace operator and study a sparse optimal control problem involving a fractional, semilinear, and elliptic partial differential equation as state equation; control constraints…

Optimization and Control · Mathematics 2023-12-14 Francisco Bersetche , Francisco Fuica , Enrique Otarola , Daniel Quero

In this paper, we deal with a class of reflected backward stochastic differential equations associated to the subdifferential operator of a lower semi-continuous convex function driven by Teugels martingales associated with L\'{e}vy…

Probability · Mathematics 2015-05-13 Yong Ren , Xiliang Fan

In this paper we give an $L_p$-theory for stochastic parabolic equations with random fractional Laplacian operator. The driving noises are general L\'evy processes.

Probability · Mathematics 2011-11-22 Kyeong-Hun Kim , Panki Kim

In this article, we develop a new method to approximate numerically the fractional Laplacian of functions defined on $\mathbb R$, as well as some more general singular integrals. After mapping $\mathbb R$ into a finite interval, we…

Numerical Analysis · Mathematics 2022-12-13 Jorge Cayama , Carlota M. Cuesta , Francisco de la Hoz , Carlos J. Garcia-Cervera

We study a class of generalized Laplacian operators by violating the ellipticity with degenerate metric tensors. The theory is motivated by the statistical mechanics of topologically constrained particles. In the context of diffusion…

Analysis of PDEs · Mathematics 2019-08-05 Naoki Sato , Zensho Yoshida

In this paper the numerical approximation of solutions of Liouville-Master Equations for time-dependent distribution functions of Piecewise Deterministic Processes with memory is considered. These equations are linear hyperbolic PDEs with…

Numerical Analysis · Mathematics 2007-05-23 Mario Annunziato

Partial differential equations (PDEs) describing thermodynamically isolated systems typically possess conserved quantities (like mass, momentum, and energy) and dissipated quantities (like entropy). Preserving these conservation and…

Numerical Analysis · Mathematics 2025-12-01 Boris D. Andrews , Patrick E. Farrell

We present and analyze an a posteriori error estimator based on mesh refinement for the solution of the hypersingular boundary integral equation governing the Laplacian in three dimensions. The discretization under consideration is a…

Numerical Analysis · Mathematics 2013-07-30 Catalina Domínguez , Norbert Heuer

We provide series expansions for the tempered stable densities and for the price of European-style contracts in the exponential L\'evy model driven by the tempered stable process. These formulas recover several popular option pricing…

Computational Finance · Quantitative Finance 2025-10-03 Gaetano Agazzotti , Jean-Philippe Aguilar

We consider the spectral definition of the fractional Laplace operator and study a basic linear problem involving this operator and singular forcing. In two dimensions, we introduce an appropriate weak formulation in fractional Sobolev…

Numerical Analysis · Mathematics 2026-02-13 Enrique Otarola , Abner J. Salgado

A bosonic Laplacian is a conformally invariant second order differential operator acting on smooth functions defined on domains in Euclidean space and taking values in higher order irreducible representations of the special orthogonal…

Mathematical Physics · Physics 2020-05-25 Chao Ding , Phuoc-Tai Nguyen , John Ryan

The purpose of this work is the study of solution techniques for problems involving fractional powers of symmetric coercive elliptic operators in a bounded domain with Dirichlet boundary conditions. These operators can be realized as the…

Numerical Analysis · Mathematics 2013-02-05 Ricardo H. Nochetto , Enrique Otarola , Abner J. Salgado

We investigate the lower bound for higher eigenvalues $\lambda_i$ of the poly-Laplace operator on a bounded domain and improve the famous Li-Yau inequality and its related results. Firstly, we consider the low dimensional cases for the…

Differential Geometry · Mathematics 2025-09-05 Zhengchao Ji , Hongwei Xu

In this work, we introduce a new discretization to the fractional Laplacian and use it to elaborate an approximation scheme for fractional heat equations perturbed by a multiplicative cylindrical white noise. In particular, we estimate the…

Probability · Mathematics 2011-02-24 Latifa Debbi , Marco Dozzi

In this paper we introduce new characterizations of spectral fractional Laplacian to incorporate nonhomogeneous Dirichlet and Neumann boundary conditions. The classical cases with homogeneous boundary conditions arise as a special case. We…

Numerical Analysis · Mathematics 2017-09-12 Harbir Antil , Johannes Pfefferer , Sergejs Rogovs

We use form methods to define suitable realisations of the Laplacian on a domain $\Omega$ with Wentzell boundary conditions, i.e. such that $\partial_{\mathrm{n}}u + \beta u + \Delta u = 0$ holds in a suitable sense on the boundary of…

Analysis of PDEs · Mathematics 2025-12-19 Wolfgang Arendt , Manfred Sauter