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We propose an algorithm to calculate the exact solution for utility optimization problems on finite state spaces under a class of non-differentiable preferences. We prove that optimal strategies must lie on a discrete grid in the plane, and…

Pricing of Securities · Quantitative Finance 2018-10-01 Marcellino Gaudenzi , Michel Vellekoop

Multigrid methods have proven to be an invaluable tool to efficiently solve large sparse linear systems arising in the discretization of partial differential equations (PDEs). Algebraic multigrid methods and in particular adaptive algebraic…

Numerical Analysis · Mathematics 2020-04-27 Hanno Gottschalk , Karsten Kahl

Through introducing a new iterative formula for divided differnce using Neville's and Aitken's algorithms,we study new iterative methods for interpolation,numerical differentiation and numerical integration formulas with arbitrary order of…

Numerical Analysis · Mathematics 2009-09-29 Ramesh Kumar Muthumalai

The problem of barycentric Hermite interpolation is highly susceptible to overflows or underflows. In this paper, based on Sturm-Liouville equations for Jacobi orthogonal polynomials, we consider the fast implementation on the second…

Numerical Analysis · Mathematics 2014-06-05 Shuhuang Xiang , Guo He

It is shown how various ideas that are well established for the solution of Poisson's equation using plane wave and multigrid methods can be combined with wavelet concepts. The combination of wavelet concepts and multigrid techniques turns…

Computational Physics · Physics 2007-05-23 S. Goedecker

We propose a method for interpolating divergence-free continuous magnetic fields via vector potential reconstruction using Hermite interpolation, which ensures high-order continuity for applications requiring adaptive, high-order ordinary…

Numerical Analysis · Mathematics 2025-01-06 Oleksii Beznosov , Jesus Bonilla , Xianzhu Tang , Golo Wimmer

The combinatorial integral approximation (CIA) is a solution technique for integer optimal control problems. In order to regularize the solutions produced by CIA, one can minimize switching costs in one of its algorithmic steps. This leads…

Optimization and Control · Mathematics 2023-05-23 Felix Bestehorn , Christoph Hansknecht , Christian Kirches , Paul Manns

An interior point method for the structural topology optimization is proposed. The linear systems arising in the method are solved by the conjugate gradient method preconditioned by geometric multigrid. The resulting method is then compared…

Optimization and Control · Mathematics 2016-06-21 Michal Kocvara , Sudaba Mohammed

An adaptive scheme to generate reduced-order models for parametric nonlinear dynamical systems is proposed. It aims to automatize the POD-Greedy algorithm combined with empirical interpolation. At each iteration, it is able to adaptively…

Numerical Analysis · Mathematics 2021-10-13 Sridhar Chellappa , Lihong Feng , Peter Benner

A multiscale optimization framework for problems over a space of Lipschitz continuous functions is developed. The method solves a coarse-grid discretization followed by linear interpolation to warm-start project gradient descent on…

Numerical Analysis · Mathematics 2026-03-05 Nicholas J. E. Richardson , Noah Marusenko , Michael P. Friedlander

This paper deals with the efficient numerical solution of the two-dimensional partial integro-differential complementarity problem (PIDCP) that holds for the value of American-style options under the two-asset Merton jump-diffusion model.…

Numerical Analysis · Mathematics 2019-12-17 Lynn Boen , Karel J. in 't Hout

A new effective solution to the problem of Hermite $G^1$ interpolation with a clothoid curve is here proposed, that is a clothoid that interpolates two given points in a plane with assigned unit tangent vectors. The interpolation problem is…

Numerical Analysis · Mathematics 2016-07-18 Enrico Bertolazzi , Marco Frego

In this paper, we propose an efficient extrapolation cascadic multigrid (EXCMG) method combined with 25-point difference approximation to solve the three-dimensional biharmonic equation. First, through applying Richardson extrapolation and…

Numerical Analysis · Mathematics 2024-12-20 Kejia Pan , Dongdong He , Runxin Ni

In this paper, we study a pricing problem of the multiple reset put option, which allows the holder to reset several times a current strike price to obtain an at-the-money European put option. We formulate the pricing problem as a multiple…

Pricing of Securities · Quantitative Finance 2021-09-21 Nazym Azimbayev , Yerkin Kitapbayev

In this work, we propose a robust and easily implemented algebraic multigrid method as a stand-alone solver or a preconditioner in Krylov subspace methods for solving either symmetric and positive definite or saddle point linear systems of…

Numerical Analysis · Mathematics 2015-03-05 Huidong Yang

This paper addresses an important gap in rigorous numerical treatments for pricing American options under correlated two-asset jump-diffusion models using the viscosity solution framework, with a particular focus on the Merton model. The…

Computational Finance · Quantitative Finance 2025-04-11 Hao Zhou , Duy-Minh Dang

Convolution-type integral equations arise from various fields, \textit{e.g.}, finite impulse response filters in signal processing and deblurring problems in image processing. When solving these equations, conventional numerical methods,…

Numerical Analysis · Mathematics 2026-05-11 Raymond Chan , Lingfeng Li

Value iteration is a commonly used and empirically competitive method in solving many Markov decision process problems. However, it is known that value iteration has only pseudo-polynomial complexity in general. We establish a somewhat…

Artificial Intelligence · Computer Science 2013-01-07 Omid Madani

High order accurate Hermite methods for the wave equation on curvilinear domains are presented. Boundaries are treated using centered compatibility conditions rather than more standard one-sided approximations. Both first-order-in-time…

Numerical Analysis · Mathematics 2024-12-04 Allen Alvarez Loya , Daniel Appelö , William D. Henshaw

In this paper, the elliptic PDE-constrained optimization problem with box constraints on the control is studied. To numerically solve the problem, we apply the 'optimize-discretize-optimize' strategy. Specifically, the alternating direction…

Optimization and Control · Mathematics 2019-08-14 Xiaotong Chen , Xiaoliang Song , Zixuan Chen , Bo Yu