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In this paper, we present a Longstaff-Schwartz-type algorithm for optimal stopping time problems based on the Brownian motion filtration. The algorithm is based on Le\~ao, Ohashi and Russo and, in contrast to previous works, our methodology…

Computational Finance · Quantitative Finance 2019-12-05 Sérgio C. Bezerra , Alberto Ohashi , Francesco Russo , Francys de Souza

We consider a second-order elliptic boundary value problem with strongly monotone and Lipschitz-continuous nonlinearity. We design and study its adaptive numerical approximation interconnecting a finite element discretization, the…

Numerical Analysis · Mathematics 2021-02-18 Alexander Haberl , Dirk Praetorius , Stefan Schimanko , Martin Vohralik

We consider numerical solutions for the Allen-Cahn equation with standard double well potential and periodic boundary conditions. Surprisingly it is found that using standard numerical discretizations with high precision computational…

Analysis of PDEs · Mathematics 2021-06-15 Dong Li , Chaoyu Quan , Tao Tang , Wen Yang

We extend the classical Bernstein technique to the setting of integro-differential operators. As a consequence, we provide first and one-sided second derivative estimates for solutions to fractional equations, including some convex fully…

Analysis of PDEs · Mathematics 2021-12-22 Xavier Cabre , Serena Dipierro , Enrico Valdinoci

We finish the definition of a subtraction scheme for computing NNLO corrections to QCD jet cross sections. In particular, we perform the integration of the soft-type contributions to the doubly unresolved counterterms via the method of…

High Energy Physics - Phenomenology · Physics 2013-04-12 Gabor Somogyi

This article combines various methods of analysis to draw a comprehensive picture of penalty approximations to the value, hedge ratio, and optimal exercise strategy of American options. While convergence of the penalised solution for…

Computational Finance · Quantitative Finance 2013-05-21 Sam Howison , Christoph Reisinger , Jan Hendrik Witte

In this paper we present a MATLAB version of a non-standard finite difference scheme for the numerical solution of the perpetual American put option models of financial markets. These models can be derived from the celebrated Black-Scholes…

Numerical Analysis · Mathematics 2014-12-05 Riccardo Fazio

Mean-reverting portfolios with few assets, but high variance, are of great interest for investors in financial markets. Such portfolios are straightforwardly profitable because they include a small number of assets whose prices not only…

Optimization and Control · Mathematics 2021-04-19 Ahmad Mousavi , Jinglai Shen

We approximate the price of the American put for jump diffusions by a sequence of functions, which are computed iteratively. This sequence converges to the price function uniformly and exponentially fast. Each element of the approximating…

Computational Engineering, Finance, and Science · Computer Science 2008-12-03 Erhan Bayraktar , Hao Xing

We investigate the Longstaff--Schwartz algorithm for American option pricing assuming that both the number of regressors and the number of Monte Carlo paths tend to infinity. Our main results concern extensions, respectively, applications…

Probability · Mathematics 2011-04-07 Stefan Gerhold

In the paper, we introduce several accelerate iterative algorithms for solving the multiple-set split common fixed-point problem of quasi-nonexpansive operators in real Hilbert space. Based on primal-dual method, we construct several…

Optimization and Control · Mathematics 2023-06-08 Chenzheng Guo , Jing Zhao

An exact algorithm is presented for solving edge weighted graph partitioning problems. The algorithm is based on a branch and bound method applied to a continuous quadratic programming formulation of the problem. Lower bounds are obtained…

Optimization and Control · Mathematics 2009-12-10 William Hager , Dzung Phan , Hongchao Zhang

We propose a bilinear decomposition for the Burer-Monteiro method and combine it with the standard Alternating Direction Method of Multipliers algorithm for semidefinite programming. Bilinear decomposition reduces the degree of the…

Optimization and Control · Mathematics 2023-02-09 Yuwen Chen , Paul Goulart

This paper depicts an algorithm for solving the Decision Boolean Satisfiability Problem using the binary numerical properties of a Special Decision Satisfiability Problem, parallel execution, object oriented, and short termination. The two…

Data Structures and Algorithms · Computer Science 2018-04-17 Carlos Barrón-Romero

We introduce a primal-dual framework for solving linearly constrained nonconvex composite optimization problems. Our approach is based on a newly developed Lagrangian, which incorporates \emph{false penalty} and dual smoothing terms. This…

Optimization and Control · Mathematics 2023-06-21 Jong Gwang Kim

In this paper, we present several new linearizations of a quadratic binary optimization problem (QBOP), primarily using the method of aggregations. Although aggregations were studied in the past in the context of solving system of…

Discrete Mathematics · Computer Science 2024-04-16 Abraham P. Punnen , Navpreet Kaur

We present an overlapping Schwarz decomposition algorithm for constrained quadratic programs (QPs). Schwarz algorithms have been traditionally used to solve linear algebra systems arising from partial differential equations, but we have…

Optimization and Control · Mathematics 2021-02-17 Sungho Shin , Mihai Anitescu , Victor M. Zavala

This paper presents a new exact method to calculate worst-case parameter realizations in two-stage robust optimization problems with categorical or binary-valued uncertain data. Traditional exact algorithms for these problems, notably…

Optimization and Control · Mathematics 2022-01-19 Anirudh Subramanyam

We consider a general decomposable convex optimization problem. By using right-hand side allocation technique, it can be transformed into a collection of small dimensional optimization problems. The master problem is a convex non-smooth…

Optimization and Control · Mathematics 2020-10-05 Igor V. Konnov

In this paper, the compact linearization approach originally proposed for binary quadratic programs with assignment constraints is generalized to such programs with arbitrary linear equations and inequalities that have positive coefficients…

Optimization and Control · Mathematics 2018-08-28 Sven Mallach