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In this paper we present a new methodology for option pricing. The main idea consists to represent a generic probability distribution function (PDF) via a perturbative expansion around a given, simpler, PDF (typically a gaussian function)…

Statistical Mechanics · Physics 2008-12-02 Marco Airoldi

Path-dependent PDEs (PPDEs) are natural objects to study when one deals with non Markovian models. Recently, after the introduction of the so-called pathwise (or functional or Dupire) calculus (see [15]), in the case of finite-dimensional…

Probability · Mathematics 2017-03-07 Andrea Cosso , Salvatore Federico , Fausto Gozzi , Mauro Rosestolato , Nizar Touzi

These are the lecture notes for a short course in topological string theory that I gave at Uppsala University in the fall of 2004. The notes are aimed at PhD students who have studied quantum field theory and general relativity, and who…

High Energy Physics - Theory · Physics 2007-05-23 Marcel Vonk

Reversible electropermeabilization, commonly referred to as electroporation, is a transient increase in cell membrane permeability induced by short, high-voltage electric pulses. We present a stochastically perturbed version of a…

Analysis of PDEs · Mathematics 2026-04-14 Tobias Gebäck , Oleksandr Misiats , Ioanna Motschan-Armen , Irina Pettersson

In this article, we present a semantics-level adaption of the Optional Stopping Theorem, sketch an expected-cost analysis as its application, and survey different variants of the Optional Stopping Theorem that have been used in static…

Programming Languages · Computer Science 2021-03-31 Di Wang , Jan Hoffmann , Thomas Reps

We introduce an explicit, adaptive time-stepping scheme for the simulation of SPDEs with one-sided Lipschitz drift coefficients. Strong convergence rates are proven for the full space-time discretisation with multiplicative trace-class…

Numerical Analysis · Mathematics 2019-08-27 Stuart Campbell , Gabriel Lord

We give a survey of the entropy theory of interval maps as it can be analyzed using ergodic theory, especially measures of maximum entropy and periodic points. The main tools are (i) a version of Hofbauer's Markov diagram, (ii) the…

Dynamical Systems · Mathematics 2007-05-23 Jerome Buzzi

The purpose of these expository notes is to give a quick and elementary, yet rigorous, presentation of the rudiments of the theory of Viscosity Solutions for fully nonlinear 2nd order PDE, with applications to Calculus of Variations in the…

Analysis of PDEs · Mathematics 2014-11-11 Nikos Katzourakis

Many time-dependent linear partial differential equations of mathematical physics and continuum mechanics can be phrased in the form of an abstract evolutionary system defined on a Hilbert space. In this paper we discuss a general framework…

Analysis of PDEs · Mathematics 2019-05-09 Stefan Neukamm , Mario Varga , Marcus Waurick

These are lecture notes that are based on the lectures from a class I taught on the topic of Spectral Graph Methods at UC Berkeley during the Spring 2015 semester.

Data Structures and Algorithms · Computer Science 2016-08-18 Michael W. Mahoney

A series of recent articles introduced a method to construct stochastic partial differential equations (SPDEs) which are invariant with respect to the distribution of a given conditioned diffusion. These works are restricted to the case of…

Probability · Mathematics 2011-04-08 Martin Hairer , Andrew M. Stuart , Jochen Voss

These are course notes on the application of SDEs to options pricing. The author was partially supported by NSF grant DMS-0739195.

Mathematical Finance · Quantitative Finance 2019-01-03 Andrew Papanicolaou

In this article, we consider the following class of stochastic partial differential equations (SPDE): \begin{equation*} \left\{\begin{aligned}\mathrm{d} \mathbf{X}(t)&=\mathrm{A}(t,\mathbf{X}(t))\mathrm{d}…

Probability · Mathematics 2022-09-15 Ankit Kumar , Manil T. Mohan

We consider parametric estimation for a second order linear parabolic stochastic partial differential equation (SPDE) in two space dimensions driven by a $Q$-Wiener process with a small noise based on high frequency spatio-temporal data. We…

Statistics Theory · Mathematics 2024-08-06 Yozo Tonaki , Yusuke Kaino , Masayuki Uchida

The combination of Monte Carlo methods and deep learning has recently led to efficient algorithms for solving partial differential equations (PDEs) in high dimensions. Related learning problems are often stated as variational formulations…

Machine Learning · Computer Science 2022-08-08 Lorenz Richter , Julius Berner

We provide necessary and sufficient conditions for stochastic invariance of finite dimensional submanifolds for solutions of stochastic partial differential equations (SPDEs) in continuously embedded Hilbert spaces with non-smooth…

Probability · Mathematics 2025-11-21 Rajeev Bhaskaran , Stefan Tappe

We study a variant of the median problem for a collection of point sets in high dimensions. This generalizes the geometric median as well as the (probabilistic) smallest enclosing ball (pSEB) problems. Our main objective and motivation is…

Computational Geometry · Computer Science 2019-03-04 Amer Krivošija , Alexander Munteanu

We investigate a class of non-Markovian processes that hold particular relevance in the realm of mathematical finance. This family encompasses path-dependent volatility models, including those pioneered by [Platen and Rendek, 2018] and,…

Mathematical Finance · Quantitative Finance 2026-01-19 Martino Grasselli , Gilles Pagès

We introduce a new probabilistic method for solving a class of impulse control problems based on their representations as Backward Stochastic Differential Equations (BSDEs for short) with constrained jumps. As an example, our method is used…

Computational Finance · Quantitative Finance 2015-03-17 Marie Bernhart , Huyên Pham , Peter Tankov , Xavier Warin

This paper focuses on stochastic partial differential equations (SPDEs) under two-time-scale formulation. Distinct from the work in the existing literature, the systems are driven by $\alpha$-stable processes with $\alpha \in(1,2)$. In…

Statistics Theory · Mathematics 2016-09-30 Jianhai Bao , George Yin , Chenggui Yuan