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We solve the escape problem for the Heston random diffusion model. We obtain exact expressions for the survival probability (which ammounts to solving the complete escape problem) as well as for the mean exit time. We also average the…

Statistical Finance · Quantitative Finance 2008-12-22 Jaume Masoliver , Josep Perello

We consider a large market model of defaultable assets in which the asset price processes are modelled as Heston-type stochastic volatility models with default upon hitting a lower boundary. We assume that both the asset prices and their…

Probability · Mathematics 2019-05-15 Ben Hambly , Nikolaos Kolliopoulos

We consider the supercooled Stefan problem, which captures the freezing of a supercooled liquid, in one space dimension. A probabilistic reformulation of the problem allows to define global solutions, even in the presence of blow-ups of the…

Probability · Mathematics 2022-05-18 Francois Delarue , Sergey Nadtochiy , Mykhaylo Shkolnikov

We study the spreading speed of a diffusive epidemic model proposed by Li et al. \cite{LL}, where the Stefan boundary condition is imposed at the right boundary, and the left boundary is subject to the homogeneous Dirichlet and Neumann…

Analysis of PDEs · Mathematics 2024-07-15 Xueping Li , Lei Li , Mingxin Wang

We formulate and solve a free target optimal Brownian stopping problem from a given distribution while the target distribution is free and is conditioned to satisfy a given density height constraint. The free target optimization problem…

Probability · Mathematics 2024-01-01 Inwon C. Kim , Young-Heon Kim

We consider the inverse multiphase Stefan problem with homogeneous Dirichlet boundary condition on a bounded Lipschitz domain, where the density of the heat source is unknown in addition to the temperature and the phase transition…

Analysis of PDEs · Mathematics 2020-05-12 Ugur G. Abdulla , Bruno Poggi

We consider a one-dimensional one-phase inverse Stefan problem for the heat equation. It consists in recovering a boundary influx condition from the knowledge of the position of the moving front, and the initial state. We derived a…

Analysis of PDEs · Mathematics 2020-02-24 Chifaa Ghanmi , Saloua Mani-Aouadi , Faouzi Triki

We investigate propagation of convexity and convex ordering on a typical discrete-time stochastic optimal control problem, namely the pricing of swing option. The dynamics of the underlying asset is modelled by the Euler scheme of a…

Mathematical Finance · Quantitative Finance 2025-08-05 Gilles Pagès , Christian Yeo

We prove the global-time existence of weak solutions to the supercooled Stefan problem. Our result holds in general space dimensions and with a general class of initial data. In addition, our solution is maximal in the sense of a certain…

Analysis of PDEs · Mathematics 2026-04-21 Sunhi Choi , Inwon C. Kim , Young-Heon Kim

This work establishes a scaling limit theorem for the Stefan problem incorporating a mushy region, demonstrating that solutions to stochastic variants with turbulent transport terms converge to the solution to a deterministic partial…

Analysis of PDEs · Mathematics 2025-05-20 Ioana Ciotir , Franco Flandoli , Dan Goreac

We study the asymptotic behavior of distribution densities arising in stock price models with stochastic volatility. The main objects of our interest in the present paper are the density of time averages of the squared volatility process…

Pricing of Securities · Quantitative Finance 2009-06-03 A. Gulisashvili , E. M. Stein

Many metal manufacturing processes involve phase change phenomena, which include melting, boiling, and vaporization. These phenomena often occur concurrently. A prototypical 1D model for understanding the phase change phenomena is the…

Materials Science · Physics 2026-02-11 Yavkreet Swami , Jacob Barajas , Amneet Pal Singh Bhalla

We study the supercooled Stefan problem in arbitrary dimensions. First, we study general solutions and their irregularities, showing generic fractal freezing and nucleation, based on a novel Markovian gluing principle. In contrast, we then…

Analysis of PDEs · Mathematics 2025-12-12 Raymond Chu , Inwon Kim , Sebastian Munoz

We consider the Stefan problem with surface tension, also known as the Stefan-Gibbs-Thomson problem, in an ambient space of arbitrary dimension. Assuming the radial symmetry of the initial data we introduce a novel "probabilistic" notion of…

Probability · Mathematics 2022-03-30 Sergey Nadtochiy , Mykhaylo Shkolnikov

In this paper we investigate stability of travelling wave solutions to a class of reaction-diffusion equations perturbed by infinite-dimensional additive noise with H\"older continuous paths, covering in particular fractional Brownian…

Probability · Mathematics 2026-01-12 Amjad Saef , Wilhelm Stannat

We study the Stefan problem with surface tension and radially symmetric initial data. In this context, the notion of a so-called physical solution, which exists globally despite the inherent blow-ups of the melting rate, has been recently…

Analysis of PDEs · Mathematics 2023-06-06 Yucheng Guo , Sergey Nadtochiy , Mykhaylo Shkolnikov

In this article it is proved the existence of similarity solutions for a one-phase Stefan problem with temperature-dependent thermal conductivity and a Robin condition at the fixed face. The temperature distribution is obtained through a…

Analysis of PDEs · Mathematics 2017-06-22 Andrea N. Ceretani , Natalia N. Salva , Domingo A. Tarzia

We investigate the stability of the Epstein-Zin problem with respect to small distortions in the dynamics of the traded securities. We work in incomplete market model settings, where our parametrization of perturbations allows for joint…

Mathematical Finance · Quantitative Finance 2023-04-12 Michael Monoyios , Oleksii Mostovyi

The one-dimensional (1D) Stefan problem is a prototypical heat and mass transfer problem that analyzes the temperature distribution in a material undergoing phase change. In addition, it describes the evolution of the phase change front…

Fluid Dynamics · Physics 2026-02-10 Mehran Soleimani , Kimmo Koponen , Nils Tilton , Amneet Pal Singh Bhalla

In the compagnion paper [Marginal density expansions for diffusions and stochastic volatility, part I] we discussed density expansions for multidimensional diffusions $(X^1,...,X^d)$, at fixed time $T$ and projected to their first $l$…

Probability · Mathematics 2013-05-30 J. D. Deuschel , P. K. Friz , A. Jacquier , S. Violante