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We introduce a new formulation for the finite element immersed boundary method which makes use of a distributed Lagrange multiplier. We prove that a full discretization of our model, based on a semi-implicit time advancing scheme, is…

Numerical Analysis · Mathematics 2015-03-05 Daniele Boffi , Nicola Cavallini , Lucia Gastaldi

Near-optimal computational complexity of an adaptive stochastic Galerkin method with independently refined spatial meshes for elliptic partial differential equations is shown. The method takes advantage of multilevel structure in expansions…

Numerical Analysis · Mathematics 2025-03-25 Markus Bachmayr , Henrik Eisenmann , Igor Voulis

In this paper, the stabilized finite element approximation of the Stokes eigenvalue problems is considered for both the two-field (displacement-pressure) and the three-field (stress-displacement-pressure) formulations. The method presented…

Numerical Analysis · Mathematics 2016-09-21 Önder Türk , Daniele Boffi , Ramon Codina

This paper introduces a semi-analytical method for pricing American options on assets (stocks, ETFs) that pay discrete and/or continuous dividends. The problem is notoriously complex because discrete dividends create abrupt price drops and…

Pricing of Securities · Quantitative Finance 2026-01-06 Andrey Itkin

This paper deals with a high-order accurate implicit finite-difference approach to the pricing of barrier options. In this way various types of barrier options are priced, including barrier options paying rebates, and options on…

Pricing of Securities · Quantitative Finance 2008-12-02 J. C. Ndogmo , D. B. Ntwiga

This paper deals with pricing of European and American options, when the underlying asset price follows Heston model, via the interior penalty discontinuous Galerkin finite element method (dGFEM). The advantages of dGFEM space…

Computational Finance · Quantitative Finance 2020-05-28 Sinem Kozpınar , Murat Uzunca , Bülent Karasözen

We study indifference pricing of exotic derivatives by using hedging strategies that take static positions in quoted derivatives but trade the underlying and cash dynamically over time. We use real quotes that come with bid-ask spreads and…

Pricing of Securities · Quantitative Finance 2020-08-05 Teemu Pennanen , Udomsak Rakwongwan

We develop a model for indifference pricing in derivatives markets where price quotes have bid-ask spreads and finite quantities. The model quantifies the dependence of the prices and hedging portfolios on an investor's beliefs, risk…

Pricing of Securities · Quantitative Finance 2018-03-08 John Armstrong , Teemu Pennanen , Udomsak Rakwongwan

For the stationary advection-diffusion problem the standard continuous Galerkin method is unstable without some additional control on the mesh or method. The interior penalty discontinuous Galerkin method is stable but at the expense of an…

Numerical Analysis · Mathematics 2013-02-25 Andrea Cangiani , John Chapman , Emmanuil Georgoulis , Max Jensen

This article presents a high order conservative flux optimization (CFO) finite element method for the elliptic diffusion equations. The numerical scheme is based on the classical Galerkin finite element method enhanced by a flux…

Numerical Analysis · Mathematics 2019-11-13 Yujie Liu , Yue Feng , Ran Zhang

Option contracts on two underlying assets within uncertain volatility models have their worst-case and best-case prices determined by a two-dimensional (2D) Hamilton-Jacobi-Bellman (HJB) partial differential equation (PDE) with…

Computational Finance · Quantitative Finance 2025-06-19 Duy-Minh Dang , Hao Zhou

We describe a compatible finite element discretisation for the shallow water equations on the rotating sphere, concentrating on integrating consistent upwind stabilisation into the framework. Although the prognostic variables are velocity…

Numerical Analysis · Mathematics 2018-10-17 J. Shipton , T. H. Gibson , C. J. Cotter

In this work, we develop variational formulations of Petrov-Galerkin type for one-dimensional fractional boundary value problems involving either a Riemann-Liouville or Caputo derivative of order $\alpha\in(3/2, 2)$ in the leading term and…

Numerical Analysis · Mathematics 2015-12-18 Bangti Jin , Raytcho Lazarov , Zhi Zhou

In this article, a compact finite difference method is proposed for pricing European and American options under jump-diffusion models. Partial integro-differential equation and linear complementary problem governing European and American…

Computational Finance · Quantitative Finance 2018-04-25 Kuldip Singh Patel , Mani Mehra

We extend our analysis on the Oldroyd-B model in Barrett and Boyaval [1] to consider the finite element approximation of the FENE-P system of equations, which models a dilute polymeric fluid, in a bounded domain $D $\subset$ R d , d = 2 or…

Numerical Analysis · Mathematics 2017-04-05 John Barrett , Sébastien Boyaval

We present a numerical method to model the dynamics of inextensible biomembranes in a quasi-Newtonian incompressible flow, which better describes hemorheology in the small vasculature. We consider a level set model for the fluid-membrane…

General Mathematics · Mathematics 2023-05-30 Aymen Laadhari , Ahmad Deeb

In this paper we present a mathematical and numerical analysis of an eigenvalue problem associated to the elasticity-Stokes equations stated in two and three dimensions. Both problems are related through the Herrmann pressure. Employing the…

Numerical Analysis · Mathematics 2023-12-19 Arbaz Khan , Felipe Lepe , David Mora , Jesus Vellojin

In this paper we develop numerical pricing methodologies for European style Exchange Options written on a pair of correlated assets, in a market with finite liquidity. In contrast to the standard multi-asset Black-Scholes framework, trading…

Pricing of Securities · Quantitative Finance 2020-06-16 Kevin S. Zhang , Traian A. Pirvu

This paper introduces an approach to decoupling singularly perturbed boundary value problems for fourth-order ordinary differential equations that feature a small positive parameter $\epsilon$ multiplying the highest derivative. We…

Numerical Analysis · Mathematics 2023-06-13 Charuka D. Wickramasinghe

We consider a model convection-diffusion problem and present useful connections between the finite differences and finite element discretization methods. We introduce a general upwinding Petrov-Galerkin discretization based on bubble…

Numerical Analysis · Mathematics 2024-02-07 Constantin Bacuta , Cristina Bacuta