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Financial derivatives pricing aims to find the fair value of a financial contract on an underlying asset. Here we consider option pricing in the partial differential equations framework. The contemporary models lead to one-dimensional or…

Computational Finance · Quantitative Finance 2015-04-07 Karel in 't Hout , Jari Toivanen

High-dimensional partial differential equations (PDE) appear in a number of models from the financial industry, such as in derivative pricing models, credit valuation adjustment (CVA) models, or portfolio optimization models. The PDEs in…

Numerical Analysis · Mathematics 2020-07-15 Christian Beck , Weinan E , Arnulf Jentzen

The state-of-the art proof of a global inf-sup condition on mixed finite element schemes does not allow for an analysis of truly indefinite, second-order linear elliptic PDEs. This paper, therefore, first analyses a nonconforming finite…

Numerical Analysis · Mathematics 2014-01-21 Carsten Carstensen , Asha K. Dond , Neela Nataraj , Amiya K. Pani

In this paper, we propose a novel high order unfitted finite element method on Cartesian meshes for solving the acoustic wave equation with discontinuous coefficients having complex interface geometry. The unfitted finite element method…

Numerical Analysis · Mathematics 2023-02-06 Zhiming Chen , Yong Liu , Xueshuang Xiang

In this paper, we study the benefits of using polyharmonic splines and node layouts with smoothly varying density for developing robust and efficient radial basis function generated finite difference (RBF-FD) methods for pricing of…

Computational Finance · Quantitative Finance 2018-08-20 Slobodan Milovanović

Finite difference method was extended to unstructured meshes to solve Euler equations. The spatial discretization is made of two steps. First, numerical fluxes are computed at the middle point of each edge with high order accuracy. In this…

Computational Physics · Physics 2021-02-26 Meiyuan Zhen , Kun Qu , Jinsheng Cai

The proximal point algorithm plays a central role in non-smooth convex programming. The Augmented Lagrangian Method, one of the most famous optimization algorithms, has been found to be closely related to the proximal point algorithm. Due…

Optimization and Control · Mathematics 2024-12-13 Ya-xiang Yuan , Yi Zhang

An a posteriori error estimator based on an equilibrated flux reconstruction is proposed for defeaturing problems in the context of finite element discretizations. Defeaturing consists in the simplification of a geometry by removing…

Numerical Analysis · Mathematics 2023-12-27 Annalisa Buffa , Ondine Chanon , Denise Grappein , Rafael Vázquez , Martin Vohralík

It is significant and challenging to solve eigenvalue problems of partial differential operators when many highly accurate eigenpair approximations are required. The adaptive finite element discretization based parallel orbital-updating…

Numerical Analysis · Mathematics 2025-09-24 Xiaoying Dai , Yan Li , Bin Yang , Aihui Zhou

In this paper, we define new unfitted finite element methods for numerically approximating the solution of surface partial differential equations using bulk finite elements. The key idea is that the $n$-dimensional hypersurface, $\Gamma…

Numerical Analysis · Mathematics 2014-03-21 Klaus Deckelnick , Charles M. Elliott , Thomas Ranner

In this paper, we study the numerical algorithm for a nonlinear poroelasticity model with nonlinear stress-strain relations. By using variable substitution, the original problem can be reformulated to a new coupled fluid-fluid system, that…

Numerical Analysis · Mathematics 2022-05-17 Zhihao Ge , Hairun Li , Tingting Li

We study a deflation method to reduce and to solve linear dfferential-algebraic equations (DAEs). It consists to define a sequence of DAEs with index reduction of one unit by step. This is simultaneously performed by substitution and…

Classical Analysis and ODEs · Mathematics 2011-09-20 Fabien Monfreda , Jean-Claude Yakoubsohn

Fitted finite element methods are constructed for a singularly perturbed convection-diffusion problem in two space dimensions. Exponential splines as basis functions are combined with Shishkin meshes to obtain a stable parameter-uniform…

Numerical Analysis · Mathematics 2023-10-03 Alan F. Hegarty , Eugene O'Riordan

We present a continuous finite element method for some examples of fully nonlinear elliptic equation. A key tool is the discretisation proposed in Lakkis & Pryer (2011, SISC) allowing us to work directly on the strong form of a linear PDE.…

Numerical Analysis · Mathematics 2015-03-19 Omar Lakkis , Tristan Pryer

In this paper we introduce a new class of finite element discretizations of the quadratic optimal transport problem based on its dynamical formulation. These generalize to the finite element setting the finite difference scheme proposed by…

Numerical Analysis · Mathematics 2022-02-24 Andrea Natale , Gabriele Todeschi

The aim of this contribution is to address the convergence study of a time and space approximation scheme for an Allen-Cahn problem with constraint and perturbed by a multiplicative noise of It\^o type. The problem is set in a bounded…

Numerical Analysis · Mathematics 2025-09-03 Caroline Bauzet , Cédric Sultan , Guy Vallet , Aleksandra Zimmermann

Mixed finite element methods solve a PDE using two or more variables. The theory of Discrete Exterior Calculus explains why the degrees of freedom associated to the different variables should be stored on both primal and dual domain meshes…

Differential Geometry · Mathematics 2011-05-13 Andrew Gillette , Chandrajit Bajaj

We generalize the primal-dual methodology, which is popular in the pricing of early-exercise options, to a backward dynamic programming equation associated with time discretization schemes of (reflected) backward stochastic differential…

Computational Finance · Quantitative Finance 2021-05-31 Christian Bender , Nikolaus Schweizer , Jia Zhuo

The objective of this paper is to introduce and demonstrate a robust methodology for solving multi-constrained 3D topology optimization problems. The proposed methodology is a combination of the topological level-set formulation, augmented…

Computational Engineering, Finance, and Science · Computer Science 2022-03-31 Shiguang Deng , Suresh Krishnan

A design optimization framework for process parameters of additive manufacturing based on finite element simulation is proposed. The finite element method uses a coupled thermomechanical model developed for fused deposition modeling from…

Numerical Analysis · Mathematics 2025-01-29 Jingyi Wang , Panayiotis Papadopoulos