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General stochastic equations with jumps are studied. We provide criteria for the uniqueness and existence of strong solutions under non-Lipschitz conditions of Yamada-Watanabe type. The results are applied to stochastic equations driven by…

Probability · Mathematics 2010-08-04 Zenghu Li , Leonid Mytnik

In mathematical finance a popular approach for pricing options under some Levy model is to consider underlying that follows a Poisson jump diffusion process. As it is well known this results in a partial integro-differential equation (PIDE)…

Computational Finance · Quantitative Finance 2010-02-11 Andrey Itkin , Peter Carr

We propose a technique for investigating stability properties like positivity and forward invariance of an interval for method-of-lines discretizations, and apply the technique to study positivity preservation for a class of TVD…

Numerical Analysis · Mathematics 2017-02-15 Imre Fekete , David I. Ketcheson , Lajos Lóczi

The continuous observation of the financial markets has identified some stylized facts which challenge the conventional assumptions, promoting the born of new approaches. On the one hand, the long-range dependence has been faced replacing…

Mathematical Finance · Quantitative Finance 2019-06-12 Axel A. Araneda

One of the difficulties of conversion rate (CVR) prediction is that the conversions can delay and take place long after the clicks. The delayed feedback poses a challenge: fresh data are beneficial to continuous training but may not have…

Machine Learning · Computer Science 2021-08-13 Siyu Gu , Xiang-Rong Sheng , Ying Fan , Guorui Zhou , Xiaoqiang Zhu

We extend the Lindquist-Rachev (LR) option-pricing framework--which values derivatives in markets lacking a traded risk-free bond--by introducing common Levy jump dynamics across two risky assets. The resulting endogenous "shadow" short…

Mathematical Finance · Quantitative Finance 2025-07-29 Ziyao Wang

In this paper we design high-order positivity-preserving approximation schemes for an integro-differential model describing photochemical reactions. Specifically, we introduce and analyze three classes of dynamically consistent methods,…

Numerical Analysis · Mathematics 2025-07-31 Mario Pezzella

We consider in this paper a numerical approximation of Poisson-Nernst-Planck-Navier- Stokes (PNP-NS) system. We construct a decoupled semi-discrete and fully discrete scheme that enjoys the properties of positivity preserving, mass…

Numerical Analysis · Mathematics 2025-07-15 Ziyao Yu , Qing Cheng , Jie Shen , Changyou Wang

As an extension of our previous work in Sun et.al (2018) [41], we develop a discontinuous Galerkin method for solving cross-diffusion systems with a formal gradient flow structure. These systems are associated with non-increasing entropy…

Numerical Analysis · Mathematics 2018-10-09 Zheng Sun , José Antonio Carrillo , Chi-Wang Shu

In this paper we focus on the pathwise stability of mild solutions for a class of stochastic partial differential equations which are driven by switching-diffusion processes with jumps. In comparison to the existing literature, we show…

Probability · Mathematics 2015-03-13 Chenggui Yuan , Jianhai Bao

We are interested in the numerical approximation of non-linear stochastic differential equations (SDEs) with solution in a certain domain. Our goal is to construct explicit numerical schemes that preserve that structure. We generalize the…

Numerical Analysis · Mathematics 2017-06-28 Ioannis S. Stamatiou

This paper presents a general positivity-preserving algorithm for implicit high-order finite volume schemes solving Euler and Navier-Stokes equations. Previous positivity-preserving algorithms are mainly based on mathematical analyses,…

Computational Physics · Physics 2023-06-26 Qian-Min Huang , Yu-Xin Ren , Qian Wang

We propose a new class of asymptotic preserving schemes to solve kinetic equations with mono-kinetic singular limit. The main idea to deal with the singularity is to transform the equations by appropriate scalings in velocity. In…

Numerical Analysis · Mathematics 2017-06-30 Alina Chertock , Changhui Tan , Bokai Yan

We introduce and study a notion of Asymptotic Preserving schemes, related to convergence in distribution, for a class of slow-fast Stochastic Differential Equations. In some examples, crude schemes fail to capture the correct limiting…

Numerical Analysis · Mathematics 2020-11-05 Charles-Edouard Bréhier , Shmuel Rakotonirina-Ricquebourg

This article investigates a regime-switching investment strategy aimed at mitigating downside risk by reducing market exposure during anticipated unfavorable market regimes. We highlight the statistical jump model (JM) for market regime…

Portfolio Management · Quantitative Finance 2024-09-18 Yizhan Shu , Chenyu Yu , John M. Mulvey

Pure-jump L\'evy processes are popular classes of stochastic processes which have found many applications in finance, statistics or machine learning. In this paper, we propose a novel family of self-decomposable L\'evy processes where one…

Methodology · Statistics 2025-02-06 Fadhel Ayed , Juho Lee , François Caron

We develop algorithms for the numerical computation of the quadratic hedging strategy in incomplete markets modeled by pure jump Markov process. Using the Hamilton-Jacobi-Bellman approach, the value function of the quadratic hedging problem…

Risk Management · Quantitative Finance 2013-12-12 Carmine De Franco , Peter Tankov , Xavier Warin

In this paper, we are devoted to the numerical methods for mean-field stochastic differential equations with jumps (MSDEJs). First by using the mean-field It\^o formula [Sun, Yang and Zhao, Numer. Math. Theor. Meth. Appl., 10 (2017),…

Numerical Analysis · Mathematics 2020-01-15 Yabing Sun , Weidong Zhao

In computational system biology, the mesoscopic model of reaction-diffusion kinetics is described by a continuous time, discrete space Markov process. To simulate diffusion stochastically, the jump coefficients are obtained by a…

Numerical Analysis · Mathematics 2018-02-19 Lina Meinecke , Stefan Engblom , Andreas Hellander , Per Lötstedt

In this paper, we present a fast and effective method for solving the Poisson-modified total variation model proposed in [9]. The existence and uniqueness of the model are again proved using different method. A semi-implicit difference…

Optimization and Control · Mathematics 2017-04-05 Wei Wang , Chuanjiang He