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This paper extends the parabolic integral equation method, which is very effective for forward scattering from rough surfaces, to include backscatter. This is done by applying left-right splitting to a modified two-way governing integral…

Optics · Physics 2017-04-25 Mark Spivack , Orsola Rath Spivack

This paper formulates and studies a stochastic maximum principle for forward-backward stochastic Volterra integral equations (FBSVIEs in short), while the control area is assumed to be convex. Then a linear quadratic (LQ in short) problem…

Probability · Mathematics 2010-04-14 Tianxiao Wang , Yufeng Shi

This paper is a second part of our study of the Discrete Polyharmonic Cubature Formulas on the disc. It completes our study and provides a satisfactory cubature formula in terms of precision and number of evaluation points (coefficient of…

Numerical Analysis · Mathematics 2015-09-02 O. Kounchev , H. Render

This paper is concerned with the numerical solution of the third kind Volterra integral equations with non-smooth solutions based on the recursive approach of the spectral Tau method. To this end, a new set of the fractional version of…

Numerical Analysis · Mathematics 2022-07-18 Younes Talaei , Pedro M Lima

In industrial applications it is quite common to use stochastic volatility models driven by semi-martingale Markov volatility processes. However, in order to fit exactly market volatilities, these models are usually extended by adding a…

Pricing of Securities · Quantitative Finance 2022-06-22 Enrico Dall'Acqua , Riccardo Longoni , Andrea Pallavicini

In the paper stochastic Volterra equations of nonscalar type in Hilbert space are studied. The aim of the paper is to provide some results on stochastic convolution and mild solutions to those Volterra equations. The motivation of the paper…

Probability · Mathematics 2007-05-23 Anna Karczewska

A general and new stochastic linear quadratic optimal control problem is studied, where the coefficients are allowed to be time-varying, and both state delay and control delay can appear simultaneously in the state equation and the cost…

Optimization and Control · Mathematics 2026-02-24 Weijun Meng , Tianxiao Wang , Ji-Feng Zhang

This paper introduces unified models for high-dimensional factor-based Ito process, which can accommodate both continuous-time Ito diffusion and discrete-time stochastic volatility (SV) models by embedding the discrete SV model in the…

Methodology · Statistics 2020-06-23 Donggyu Kim , Xinyu Song , Yazhen Wang

The paper is devoted to the efficient computation of high-order cubature formulas for volume potentials obtained within the framework of approximate approximations. We combine this approach with modern methods of structured tensor product…

Numerical Analysis · Mathematics 2009-02-13 Flavia Lanzara , Vladimir Maz'ya , Gunther Schmidt

In this paper, we consider equilibrium strategies under Volterra processes and time-inconsistent preferences embracing mean-variance portfolio selection (MVP). Using a functional It\^o calculus approach, we overcome the non-Markovian and…

Mathematical Finance · Quantitative Finance 2021-12-23 Bingyan Han , Hoi Ying Wong

In this paper, we investigate and analyze numerical solutions for the Volterra integrodifferential equations with tempered multi-term kernels. Firstly we derive some regularity estimates of the exact solution. Then a temporal-discrete…

Numerical Analysis · Mathematics 2023-05-03 Wenlin Qiu

With the use of tensor product of Hilbert space, and a diagonalization procedure from operator theory, we derive an approximation formula for a general class of stochastic integrals. Further we establish a generalized Fourier expansion for…

Mathematical Physics · Physics 2015-05-13 Palle E. T. Jorgensen , Myung-Sin Song

We present numerical schemes for the strong solution of linear stochastic differential equations driven by an arbitrary number of Wiener processes. These schemes are based on the Neumann (stochastic Taylor) and Magnus expansions. Firstly,…

Numerical Analysis · Mathematics 2007-08-22 Gabriel Lord , Simon J. A. Malham , Anke Wiese

In many mathematical types of research, in order to solve the fuzzy fractional differential equations, we should transform these problems into crisp corresponding problems and by solving them the approximate solution can be obtained. The…

General Mathematics · Mathematics 2020-11-02 T. Allahviranloo , Z. Noeiaghdam , S. Noeiaghdam , S. Salahshour , Juan J. Nieto

We analyze a discretization method for solving nonlinear integral equations that contain multiple integrals. These equations include integral equations with a Volterra series, instead of a single integral term, on one side of the equation.…

Numerical Analysis · Mathematics 2010-02-04 S. A. Belbas , Yuriy Bulka

We consider closed-form approximations for European put option prices within the Heston and GARCH diffusion stochastic volatility models with time-dependent parameters. Our methodology involves writing the put option price as an expectation…

Mathematical Finance · Quantitative Finance 2024-02-06 Kaustav Das , Nicolas Langrené

Predicting the conditional evolution of Volterra processes with stochastic volatility is a crucial challenge in mathematical finance. While deep neural network models offer promise in approximating the conditional law of such processes,…

Numerical Analysis · Mathematics 2024-05-31 Reza Arabpour , John Armstrong , Luca Galimberti , Anastasis Kratsios , Giulia Livieri

In this paper, we present an approach to enhance interpolation and approximation error estimates. Based on a previously derived first-order Taylor-like formula, we demonstrate its applicability in improving the $P_1$-interpolation error…

Numerical Analysis · Mathematics 2023-10-31 Joel Chaskalovic , Franck Assous

In this paper we consider the simulation-based Bayesian analysis of stochastic volatility in mean (SVM) models. Extending the highly efficient Markov chain Monte Carlo mixture sampler for the SV model proposed in Kim et al. (1998) and Omori…

Econometrics · Economics 2024-11-21 Daichi Hiraki , Siddhartha Chib , Yasuhiro Omori

A novel method is proposed to infer Bayesian predictions of computationally expensive models. The method is based on the construction of quadrature rules, which are well-suited for approximating the weighted integrals occurring in Bayesian…

Numerical Analysis · Mathematics 2020-06-09 L. M. M. van den Bos , B. Sanderse , W. A. A. M. Bierbooms