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We consider mean-reverting CIR/CEV processes with delay and jumps used as models on the financial markets. These processes are solutions of stochastic differential equations with jumps, which have no explicit solutions. We prove the…

Numerical Analysis · Mathematics 2019-04-09 Ioannis S Stamatiou

In this paper we propose an explicit and positivity preserving scheme for the mean reverting CEV model which converges in the mean square sense with convergence order $a(a-1/2)$.

Numerical Analysis · Mathematics 2015-01-20 Nikolaos Halidias

In this paper we want to exploit further the semi-discrete method appeared in Halidias and Stamatiou (2015). We are interested in the numerical solution of mean reverting CEV processes that appear in financial mathematics models and are…

Numerical Analysis · Mathematics 2015-05-11 Nikolaos Halidias , Ioannis Stamatiou

In this paper, we introduce a linear stochastic volatility model driven by $\alpha$-stable processes, which admits a unique positive solution. To preserve positivity, we modify the classical forward Euler-Maruyama scheme and analyze its…

Probability · Mathematics 2025-02-04 Xiaotong Li , Wei Liu , Xuerong Mao , Hongjiong Tian , Yue Wu

Fundamental solution of a space fractional convection equation of order $\alpha$ is the probability density function of L\'{e}vy flights with long-tailed $\alpha$-stable jump length distribution. By studying an upwind second-order implicit…

Numerical Analysis · Mathematics 2025-02-25 Lot-Kei Chou , Wan-Na Deng , Yuan-Yuan Huang , Siu-Long Lei

Godunov type numerical schemes for the class of hyperbolic systems, admitting non-classical $\delta-$ shocks are proposed. It is shown that the numerical approximations converge to the solution and preserve the physical properties of the…

Analysis of PDEs · Mathematics 2021-09-01 Aekta Aggarwal , Ganesh Vaidya , G. D. Veerappa Gowda

In this paper, we propose and analyze a positivity-preserving, energy stable numerical scheme for certain type reaction-diffusion systems involving the Law of Mass Action with the detailed balance condition. The numerical scheme is…

Numerical Analysis · Mathematics 2021-04-07 Chun Liu , Cheng Wang , Yiwei Wang

In this paper, we design a semi-implicit scheme for the scalar time fractional reaction-diffusion equation. We theoretically prove that the numerical scheme is stable without the restriction on the ratio of the time and space stepsizes, and…

Numerical Analysis · Mathematics 2014-01-30 Yanyan Yu , Weihua Deng , Yujiang Wu

In this paper, we propose a class of explicit positivity preserving numerical methods for general stochastic differential equations which have positive solutions. Namely, all the numerical solutions are positive. Under some reasonable…

Numerical Analysis · Mathematics 2021-06-30 Yulian Yi , Yaozhong Hu , Jingjun Zhao

We develop a new finite difference scheme for the Maxwell-Stefan diffusion system. The scheme is conservative, energy stable and positivity-preserving. These nice properties stem from a variational structure and are proved by reformulating…

Numerical Analysis · Mathematics 2020-05-19 Xiaokai Huo , Hailiang Liu , Athanasios E. Tzavaras , Shuaikun Wang

In this paper we generalize an explicit numerical scheme for the CIR process that we have proposed before. The advantage of the new proposed scheme is that preserves positivity and is well posed for a (little bit) broader set of parameters…

Numerical Analysis · Mathematics 2015-02-20 Nikolaos Halidias

We propose a novel non-compact, positivity-preserving scheme for linear non-divergence form elliptic equations. Based on the Feynman--Kac formula, the solution is represented as a conditional expectation associated with a diffusion…

Numerical Analysis · Mathematics 2026-04-06 Haoran Xu , Kunyang Li , Xingye Yue

In the present paper, we introduce a numerical scheme for the price of a barrier option when the price of the underlying follows a diffusion process. The numerical scheme is based on an extension of a static hedging formula of barrier…

Computational Finance · Quantitative Finance 2012-08-21 Yuri Imamura , Yuta Ishigaki , Takuya Kawagoe , Toshiki Okumura

In this note we work on the construction of positive preserving numerical schemes for systems of stochastic differential equations. We use the semi discrete idea that we have proposed before proposing now a numerical scheme that preserves…

Numerical Analysis · Mathematics 2013-10-10 Nikolaos Halidias

We propose a new fully-discretized finite difference scheme for a quantum diffusion equation, in both one and two dimensions. This is the first fully-discretized scheme with proven positivity-preserving and energy stable properties using…

Numerical Analysis · Mathematics 2020-04-10 Xiaokai Huo , Hailiang Liu

The Langevin dynamics is a diffusion process extensively used, in particular in molecular dynamics simulations, to sample Gibbs measures. Some alternatives based on (piecewise deterministic) kinetic velocity jump processes have gained…

Numerical Analysis · Mathematics 2025-05-27 Nicolaï Gouraud , Lucas Journel , Pierre Monmarché

In this paper, we introduce a novel variant of the CBO method that incorporates jumps according to an $\alpha$-stable stochastic process in a kinetic framework. This extension gives rise to nonlocal stochastic effects, which improve the…

Optimization and Control · Mathematics 2026-04-08 Pedro Aceves-Sanchez , Giacomo Albi , Federica Ferrarese , Michael Herty

A new numerical scheme for conservation equations based on evolution by asynchronous discrete events is presented. During each event of the scheme only two cells of the underlying Cartesian grid are active, and an event is processed as the…

Numerical Analysis · Mathematics 2016-10-24 Daniel Stone , Gabriel Lord

In this work, we propose a positivity-preserving scheme for solving two-dimensional advection-diffusion equations including mixed derivative terms, in order to improve the accuracy of lower-order methods. The solution to these equations, in…

Computational Physics · Physics 2018-05-14 Erasmus J. du Toit , Martin R. O'Brien , Roddy G. L. Vann

We consider a special type of fast reaction-diffusion systems in which the coefficients of the reaction terms of the two substances are much larger than those of the diffusion terms while the diffusive motion to the substrate is negligible.…

Numerical Analysis · Mathematics 2024-04-30 Yu Zhao , Zhennan Zhou
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