English
Related papers

Related papers: On a Stable Method for Option Pricing: Discontinuo…

200 papers

The Black-Scholes option pricing model remains a cornerstone in financial mathematics, yet its application is often challenged by the need for accurate hedging strategies, especially in dynamic market environments. This paper presents a…

Mathematical Finance · Quantitative Finance 2024-05-07 Agni Rakshit , Gautam Bandyopadhyay , Tanujit Chakraborty

We propose a least-squares penalization as a means to extend the discontinuous Petrov-Galerkin (DPG) method with optimal test functions to a class of semilinear elliptic problems. The nonlinear contributions are replaced with independent…

Numerical Analysis · Mathematics 2026-04-01 Carlos García Vera , Norbert Heuer , Dirk Praetorius

In this work we present an enriched Petrov-Galerkin (EPG) method for the simulation of the Darcy flow in porous media. The new method enriches the approximation trial space of the conforming continuous Galerkin (CG) method with bubble…

Numerical Analysis · Mathematics 2024-02-15 Huangxin Chen , Piaopiao Dong , Shuyu Sun , Zixuan Wang

We propose a Petrov--Galerkin spectral method for ODEs with variable coefficients. When the variable coefficients are smooth, the new method yields a strictly banded linear system, which can be efficiently constructed and solved in linear…

Numerical Analysis · Mathematics 2025-02-18 Ouyuan Qin , Lu Cheng , Kuan Xu

This paper focuses on the adaptive discontinuous Galerkin (DG) methods for the tempered fractional (convection) diffusion equations. The DG schemes with interior penalty for the diffusion term and numerical flux for the convection term are…

Numerical Analysis · Mathematics 2020-06-16 Xudong Wang , Weihua Deng

This paper discusses the computation of derivatives for optimization problems governed by linear hyperbolic systems of partial differential equations (PDEs) that are discretized by the discontinuous Galerkin (dG) method. An efficient and…

Numerical Analysis · Mathematics 2013-11-28 Lucas C. Wilcox , Georg Stadler , Tan Bui-Thanh , Omar Ghattas

In this work, an exponential Discontinuous Galerkin (DG) method is proposed to solve numerically Vlasov type equations. The DG method is used for space discretization which is combined exponential Lawson Runge-Kutta method for time…

Numerical Analysis · Mathematics 2023-08-01 Nicolas Crouseilles , Xue Hong

In the present paper, we consider the discontinuous Galerkin (DG) methods for solving short pulse (SP) type equations. The short pulse equation has been shown to be completely integrable, which admits the loop-soliton, cuspon-soliton…

Numerical Analysis · Mathematics 2019-10-23 Qian Zhang , Yinhua Xia

In this work, we propose and investigate stable high-order collocation-type discretisations of the discontinuous Galerkin method on equidistant and scattered collocation points. We do so by incorporating the concept of discrete least…

Numerical Analysis · Mathematics 2021-02-24 Jan Glaubitz , Philipp Oeffner

We present a simple, fast, and accurate method for pricing a variety of discretely monitored options in the Black-Scholes framework, including autocallable structured products, single and double barrier options, and Bermudan options. The…

Computational Finance · Quantitative Finance 2019-06-04 Min Huang , Guo Luo

Discontinuous Galerkin (DG) methods for hyperbolic partial differential equations (PDEs) with explicit time-stepping schemes, such as strong stability-preserving Runge-Kutta (SSP-RK), suffer from time-step restrictions that are…

Numerical Analysis · Mathematics 2019-03-11 Pierson T. Guthrey , James A. Rossmanith

The roots of Discontinuous Galerkin (DG) methods is usually attributed to Reed and Hills in a paper published in 1973 on the numerical approximation of the neutron transport equation [18]. In fact, the adventure really started with a rather…

Numerical Analysis · Mathematics 2016-02-16 Adam Larat

Discontinuous Galerkin (DG) methods are considered for solving a plate contact problem, which is a 4th-order elliptic variational inequality of second kind. Numerous $C^0$ DG schemes for the Kirchhoff plate bending problem are extended to…

Numerical Analysis · Mathematics 2014-10-28 Fei Wang , Tianyi Zhang , Weimin Han

Deterministic policy gradient (DPG) is widely utilized for continuous control; however, it inherently relies on the differentiability of the critic with respect to the action during policy updates. This assumption is violated in practical…

Machine Learning · Computer Science 2026-05-08 Hyunjun Na , Donghwan Lee

We consider the discretization of a class of nonlinear parabolic equations by discontinuous Galerkin time-stepping methods and establish a priori as well as conditional a posteriori error estimates. Our approach is motivated by the error…

Numerical Analysis · Mathematics 2024-12-12 Georgios Akrivis , Stig Larsson

Hyperbolic-parabolic partial differential equations are widely used for the modeling of complex, multiscale problems. High-order methods such as the discontinuous Galerkin (DG) scheme are attractive candidates for their numerical…

Numerical Analysis · Mathematics 2025-07-08 Jens Keim , Anna Schwarz , Patrick Kopper , Marcel Blind , Christian Rohde , Andrea Beck

The paper investigates the performance of the European option price when the log asset price follows a rich class of Generalized Tempered Stable (GTS) distribution. The GTS distribution is an alternative to Normal distribution and…

Pricing of Securities · Quantitative Finance 2025-02-21 A. H. Nzokem

In this paper, we study the stability (in terms of the maximum time step) and accuracy (in terms of the wavenumber-diffusion properties) for several popular discontinuous Galerkin (DG) viscous flux formulations. The considered methods…

Numerical Analysis · Mathematics 2020-12-23 Mohammad Alhawwary , Z. J. Wang

In this paper we formulate and analyze a Discontinuous Petrov Galerkin formulation of linear transport equations with variable convection fields. We show that a corresponding {\em infinite dimensional} mesh-dependent variational…

Numerical Analysis · Mathematics 2015-10-12 D. Broersen , W. Dahmen , R. P. Stevenson

We formulate a stabilized quasi-optimal Petrov-Galerkin method for singularly perturbed convection-diffusion problems based on the variational multiscale method. The stabilization is of Petrov-Galerkin type with a standard finite element…

Numerical Analysis · Mathematics 2016-06-16 Guanglian Li , Daniel Peterseim , Mira Schedensack