English
Related papers

Related papers: Kernel-based collocation methods for Heath-Jarrow-…

200 papers

We present Monte Carlo-Euler methods for a weak approximation problem related to the Heath-Jarrow-Morton (HJM) term structure model, based on \Ito stochastic differential equations in infinite dimensional spaces, and prove strong and weak…

Numerical Analysis · Mathematics 2012-04-10 Thomas Björk , Anders Szepessy , Raul Tempone , Georgios E. Zouraris

We propose and analyze numerical methods for the Heath-Jarrow-Morton (HJM) model. To construct the methods, we first discretize the infinite dimensional HJM equation in maturity time variable using quadrature rules for approximating the…

Computational Finance · Quantitative Finance 2016-06-07 M. Krivko , M. V. Tretyakov

In this paper, we discuss the solution of certain matrix-valued partial differential equations. Such PDEs arise, for example, when constructing a Riemannian contraction metric for a dynamical system given by an autonomous ODE. We develop…

Numerical Analysis · Mathematics 2017-06-29 Peter Giesl , Holger Wendland

This paper considers the initial value problem of general nonlinear stochastic fractional integro-differential equations with weakly singular kernels. Our effort is devoted to establishing some fine estimates to include all the cases of…

Numerical Analysis · Mathematics 2021-09-15 Xinjie Dai , Aiguo Xiao , Weiping Bu

This manuscript examines the problem of nonlinear stochastic fractional neutral integro-differential equations with weakly singular kernels. Our focus is on obtaining precise estimates to cover all possible cases of Abel-type singular…

Numerical Analysis · Mathematics 2025-04-18 Javad A. Asadzade , Nazim I. Mahmudov

This article gives a new insight of kernel-based (approximation) methods to solve the high-dimensional stochastic partial differential equations. We will combine the techniques of meshfree approximation and kriging interpolation to extend…

Numerical Analysis · Mathematics 2015-02-20 Qi Ye

We present a dynamic model for forward curves within the Heath-Jarrow-Morton framework under the Musiela parametrization. The forward curves take values in a function space H, and their dynamics follows a stochastic partial differential…

Probability · Mathematics 2025-03-14 Nils Detering , Silvia Lavagnini

We analyse a Monte Carlo particle method for the simulation of the calibrated Heston-type local stochastic volatility (H-LSV) model. The common application of a kernel estimator for a conditional expectation in the calibration condition…

Computational Finance · Quantitative Finance 2025-04-22 Christoph Reisinger , Maria Olympia Tsianni

In this paper we show how to approximate a Heath-Jarrow-Morton dynamics for the forward prices in commodity markets with arbitrage-free models which have a finite dimensional state space. Moreover, we recover a closed form representation of…

Mathematical Finance · Quantitative Finance 2015-12-21 Fred Espen Benth , Paul Krühner

We study the pricing of European-style options written on forward contracts within function-valued infinite-dimensional affine stochastic volatility models. The dynamics of the underlying forward price curves are modeled within the…

Mathematical Finance · Quantitative Finance 2026-04-14 Jian He , Sven Karbach , Asma Khedher

We consider a discrete-time approximation of paths of an Ornstein--Uhlenbeck process as a mean for estimation of a price of European call option in the model of financial market with stochastic volatility. The Euler--Maruyama approximation…

Computational Finance · Quantitative Finance 2016-01-07 Sergii Kuchuk-Iatsenko , Yuliya Mishura

We discuss the application of multistep collocation methods to Volterra integral equations which contain a weakly singular kernel $(t-\tau)^{\alpha-1}$ with $0 <\alpha <1.$ Convergence orders of the methods are determined and their…

Numerical Analysis · Mathematics 2014-12-17 D. Nazari Susahab , S. Shahmorad

We propose a quasi maximum likelihood estimation method for Bergomi-type stochastic volatility models with parametrized kernels, focusing on the estimation of the kernel parameters from high-frequency time-series observations of option…

Statistics Theory · Mathematics 2026-05-26 Masaaki Fukasawa , Haruki Tomita

Calculating dynamical spin correlations is essential for matching model magnetic exchange Hamiltonians to momentum-resolved spectroscopic measurements. A major numerical bottleneck is the diagonalization of the dynamical matrix, especially…

Strongly Correlated Electrons · Physics 2024-11-27 Harry Lane , Hao Zhang , David Dahlbom , Sam Quinn , Rolando D. Somma , Martin Mourigal , Cristian D. Batista , Kipton Barros

This paper is devoted to proving a (Lindeberg-Feller type ) central limit theorem for the multilevel Monte Carlo estimator associated with the Euler discretization scheme for the stochastic Volterra equations with fractional kernels…

Probability · Mathematics 2025-06-05 Shanqi Liu , Yaozhong Hu , Hongjun Gao

In this paper we combine the theory of reproducing kernel Hilbert spaces with the field of collocation methods to solve boundary value problems with special emphasis on reproducing property of kernels. From the reproducing property of…

Numerical Analysis · Mathematics 2019-03-26 Babak Azarnavid , Mahdi Emamjome , Mohammad Nabati , Saeid Abbasbandy

This paper considers the single factor Heath-Jarrow-Morton model for the interest rate curve with stochastic volatility. Its natural formulation, described in terms of stochastic differential equations, is solved through Monte Carlo…

Computational Finance · Quantitative Finance 2012-08-02 Eusebio Valero , Manuel Torrealba , Lucas Lacasa , François Fraysse

An efficient compression technique based on hierarchical tensors for popular option pricing methods is presented. It is shown that the "curse of dimensionality" can be alleviated for the computation of Bermudan option prices with the Monte…

Computational Finance · Quantitative Finance 2021-03-09 Christian Bayer , Martin Eigel , Leon Sallandt , Philipp Trunschke

The paper is concerned with the problem of existence of solutions for the Heath-Jarrow-Morton equation with linear volatility. Necessary conditions and sufficient conditions for the existence of weak solutions and strong solutions are…

Probability · Mathematics 2010-11-10 Michal Barski , Jerzy Zabczyk

We propose algorithms for solving convective-diffusion partial differential equations (PDEs), which model surfactant concentration and heat transport on evolving surfaces, based on intrinsic kernel-based meshless collocation methods. The…

Numerical Analysis · Mathematics 2023-12-14 Meng Chen , Leevan Ling
‹ Prev 1 2 3 10 Next ›