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In this paper, we propose the exponential Levy neural network (ELNN) for option pricing, which is a new non-parametric exponential Levy model using artificial neural networks (ANN). The ELNN fully integrates the ANNs with the exponential…

Pricing of Securities · Quantitative Finance 2018-09-18 Jeonggyu Huh

Deep Neural Networks (DNNs) are rapidly being applied to safety-critical domains such as drone and airplane control, motivating techniques for verifying the safety of their behavior. Unfortunately, DNN verification is NP-hard, with current…

Machine Learning · Computer Science 2020-09-15 Matthew Sotoudeh , Aditya V. Thakur

In this work, we propose an ensemble of classification trees (CT) and artificial neural networks (ANN). Several statistical properties including universal consistency and upper bound of an important parameter of the proposed classifier are…

Statistics Theory · Mathematics 2022-07-18 Tanujit Chakraborty , Ashis Kumar Chakraborty , C. A. Murthy

Rectified linear unit (ReLU) is a widely used activation function for deep convolutional neural networks. However, because of the zero-hard rectification, ReLU networks miss the benefits from negative values. In this paper, we propose a…

Computer Vision and Pattern Recognition · Computer Science 2018-01-30 Suo Qiu , Xiangmin Xu , Bolun Cai

Many engineering processes can be accurately modelled using partial differential equations (PDEs), but high dimensionality and non-convexity of the resulting systems pose limitations on their efficient optimisation. In this work, a model…

Optimization and Control · Mathematics 2024-10-17 Min Tao , Panagiotis Petsagkourakis , Jie Li , Constantinos Theodoropoulos

In this work, we propose a deep neural network method to perform nonparametric regression for functional data. The proposed estimators are based on sparsely connected deep neural networks with ReLU activation function. By properly choosing…

Machine Learning · Statistics 2020-12-09 Shuoyang Wang , Guanqun Cao , Zuofeng Shang

There has been a significant recent surge in deep neural network (DNN) techniques. Most of the existing DNN techniques have restricted model formats/assumptions. To overcome their limitations, we propose the nonparametric transformation…

Methodology · Statistics 2024-10-28 Tong Wang , Shunqin Zhang , Sanguo Zhang , Jian Huang , Shuangge Ma

Utilizing a generative regime switching framework, we perform Monte-Carlo simulations of asset returns for Value at Risk threshold estimation. Using equity markets and long term bonds as test assets in the global, US, Euro area and UK…

Risk Management · Quantitative Finance 2020-05-07 Alexander Arimond , Damian Borth , Andreas Hoepner , Michael Klawunn , Stefan Weisheit

Artificial neural networks (ANNs) have recently also been applied to solve partial differential equations (PDEs). In this work, the classical problem of pricing European and American financial options, based on the corresponding PDE…

Computational Finance · Quantitative Finance 2020-05-26 Beatriz Salvador , Cornelis W. Oosterlee , Remco van der Meer

Random utility maximisation (RUM) models are one of the cornerstones of discrete choice modelling. However, specifying the utility function of RUM models is not straightforward and has a considerable impact on the resulting interpretable…

Machine Learning · Statistics 2024-04-23 Jose Ignacio Hernandez , Niek Mouter , Sander van Cranenburgh

One of the most common and universal problems in science is to investigate a function. The prediction can be made by an Artificial Neural Network (ANN) or a mathematical model. Both approaches have their advantages and disadvantages.…

Neural and Evolutionary Computing · Computer Science 2022-02-22 Szymon Buchaniec , Marek Gnatowski , Grzegorz Brus

The non-convexity of the artificial neural network (ANN) training landscape brings inherent optimization difficulties. While the traditional back-propagation stochastic gradient descent (SGD) algorithm and its variants are effective in…

Machine Learning · Computer Science 2025-06-18 Yatong Bai , Tanmay Gautam , Somayeh Sojoudi

We establish that randomly initialized neural networks, with large width and a natural choice of hyperparameters, have nearly independent outputs exactly when their activation function is nonlinear with zero mean under the Gaussian measure:…

Machine Learning · Computer Science 2026-01-13 John Dunbar , Scott Aaronson

Stock exchanges are considered major players in financial sectors of many countries. Most Stockbrokers, who execute stock trade, use technical, fundamental or time series analysis in trying to predict stock prices, so as to advise clients.…

Statistical Finance · Quantitative Finance 2015-02-24 B. W. Wanjawa , L. Muchemi

Randomized neural network (RaNN) methods have been proposed for solving various partial differential equations (PDEs), demonstrating high accuracy and efficiency. However, initializing the fixed parameters remains challenging. Additionally,…

Numerical Analysis · Mathematics 2025-11-25 Haoning Dang , Fei Wang , Song Jiang

Although various linear log-distance path loss models have been developed, advanced models are requiring to more accurately and flexibly represent the path loss for complex environments such as the urban area. This letter proposes an…

Machine Learning · Computer Science 2019-04-05 Chanshin Park , Daniel K. Tettey , Han-Shin Jo

Inverse problems are encountered in many domains of physics, with analytic continuation of the imaginary Green's function into the real frequency domain being a particularly important example. However, the analytic continuation problem is…

Computational Physics · Physics 2020-02-07 Romain Fournier , Lei Wang , Oleg V. Yazyev , QuanSheng Wu

In recent days, Artificial Neural Network (ANN) can be applied to a vast majority of fields including business, medicine, engineering, etc. The most popular areas where ANN is employed nowadays are pattern and sequence recognition, novelty…

Computer Vision and Pattern Recognition · Computer Science 2019-02-06 Md. Abu Bakr Siddique , Mohammad Mahmudur Rahman Khan , Rezoana Bente Arif , Zahidun Ashrafi

With the increasing use of nonlinear devices in both generation and consumption of power, it is essential that we develop accurate and quick control for active filters to suppress harmonics. Time delays between input and output are…

Systems and Control · Electrical Eng. & Systems 2024-10-04 Dixant Bikal Sapkota , Puskar Neupane , Kajal Pokharel , Shahabuddin Khan

Our objective is to estimate the unknown compositional input from its output response through an unknown system after estimating the inverse of the original system with a training set. The proposed methods using artificial neural networks…

Machine Learning · Computer Science 2020-01-27 Se Un Park