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We study the situation of an agent who can trade on a financial market and can also transform some assets into others by means of a production system, in order to price and hedge derivatives on produced goods. This framework is motivated by…

Pricing of Securities · Quantitative Finance 2012-03-02 Adrien Nguyen Huu

Classical trajectories are calculated for two Hamiltonian systems with ring shaped potentials. Both systems are super-integrable, but not maximally super-integrable, having four globally defined single valued integrals of motion each. All…

Quantum Physics · Physics 2009-11-10 Maurice Robert Kibler , Pavel Winternitz

Set prediction is about learning to predict a collection of unordered variables with unknown interrelations. Training such models with set losses imposes the structure of a metric space over sets. We focus on stochastic and underdefined…

Machine Learning · Computer Science 2021-02-23 David W. Zhang , Gertjan J. Burghouts , Cees G. M. Snoek

In classical stochastic theory, the joint probability distributions of a stochastic process obey by definition the Kolmogorov consistency conditions. Interpreting such a process as a sequence of physical measurements with probabilistic…

Quantum Physics · Physics 2023-12-12 Moritz F. Richter , Andrea Smirne , Walter T. Strunz , Dario Egloff

We study contingent claims in a discrete-time market model where trading costs are given by convex functions and portfolios are constrained by convex sets. In addition to classical frictionless markets and markets with transaction costs or…

Pricing of Securities · Quantitative Finance 2008-12-10 Teemu Pennanen

We consider the no-boundary proposal for homogeneous isotropic closed universes with a cosmological constant and a scalar field with a quadratic potential. In the semi-classical limit, it predicts classical behavior at late times if the…

High Energy Physics - Theory · Physics 2008-11-26 James B. Hartle , S. W. Hawking , Thomas Hertog

We provide a Fundamental Theorem of Asset Pricing and a Superhedging Theorem for a model independent discrete time financial market with proportional transaction costs. We consider a probability-free version of the Robust No Arbitrage…

Mathematical Finance · Quantitative Finance 2016-08-26 Matteo Burzoni

Basic notions regarding classical integrable systems are reviewed. An algebraic description of the classical integrable models together with the zero curvature condition description is presented. The classical r-matrix approach for discrete…

Mathematical Physics · Physics 2012-03-01 Anastasia Doikou

In the theory of riskfree hedges in continuous time finance, one can start with the delta-hedge and derive the option pricing equation, or one can start with the replicating, self-financing hedging strategy and derive both the delta-hedge…

Statistical Mechanics · Physics 2008-12-10 Joesph L. McCauley

To make precise the sense in which the operational predictions of quantum theory conflict with a classical worldview, it is necessary to articulate a notion of classicality within an operational framework. A widely applicable notion of…

Quantum Physics · Physics 2021-03-03 David Schmid , John Selby , Elie Wolfe , Ravi Kunjwal , Robert W. Spekkens

Risk-neutral pricing dictates that the discounted derivative price is a martingale in a measure equivalent to the economic measure. The residual ambiguity for incomplete markets is here resolved by minimising the entropy of the price…

Mathematical Finance · Quantitative Finance 2020-07-01 Paul McCloud

We present a discussion on lattice techniques for the simulation of non-canonical field theory circumstances, complementing our previous monograph (arXiv:2006.15122) on canonical cases. We begin by reviewing basic aspects of lattice field…

In this article, we review selective inference, a set of techniques for inference when the statistical question asked is a function of the data. This setting often arises in contemporary scientific workflows, where hypotheses and parameters…

Methodology · Statistics 2026-04-14 Anna Neufeld , Ronan Perry , Daniela Witten

In a first part the scope of classical thermodynamics and statistical mechanics is discussed in the broader context of formal dynamical systems, including computer programmes. In this context classical thermodynamics appears as a particular…

Statistical Mechanics · Physics 2009-11-11 Daniel Pfenniger

Formal Concept Analysis (FCA) is an approach to creating a conceptual hierarchy in which a \textit{concept lattice} is generated from a \textit{formal context}. That is, a triple consisting of a set of objects, $G$, a set of attributes,…

Logic in Computer Science · Computer Science 2024-10-08 Lucas Carr , Nicholas Leisegang , Thomas Meyer , Sebastian Rudolph

Following on from our recent work, we investigate a stochastic approach to non-equilibrium quantum spin systems. We show how the method can be applied to a variety of physical observables and for different initial conditions. We provide…

Statistical Mechanics · Physics 2020-01-24 S. De Nicola , B. Doyon , M. J. Bhaseen

In this paper we give a financial justification, based on non arbitrage conditions, of the $(H)$ hypothesis in default time modelling. We also show how the $(H)$ hypothesis is affected by an equivalent change of probability measure. The…

Probability · Mathematics 2008-12-23 Delia Coculescu , Monique Jeanblanc , Ashkan Nikeghbali

We present a theoretical framework on non-local classical field theory using fractional integrodifferential operators. Due to the lack of easily manageable symmetries in traditional fractional calculus and the difficulties that arise in the…

Classical Physics · Physics 2024-12-17 Abhi Savaliya , Ayush Bidlan

Markets have internal dynamics leading to excess volatility and other phenomena that are difficult to explain using rational expectations models. This paper studies these using a nonequilibrium price formation rule, developed in the context…

adap-org · Physics 2015-06-30 J. Doyne Farmer

The notion of concept has been studied for centuries, by philosophers, linguists, cognitive scientists, and researchers in artificial intelligence (Margolis & Laurence, 1999). There is a large literature on formal, mathematical models of…

Artificial Intelligence · Computer Science 2021-01-14 Stephen Clark , Alexander Lerchner , Tamara von Glehn , Olivier Tieleman , Richard Tanburn , Misha Dashevskiy , Matko Bosnjak