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In this paper, we are interested in positivity-preserving approximations of stochastic differential equations (SDEs) with non-Lipschitz coefficients, arising from computational finance and possessing positive solutions. By leveraging a…

Numerical Analysis · Mathematics 2025-10-21 Xiaojuan Wu , Ruishu Liu , Jiahao Xu

In this paper, we consider scalar stochastic differential equations (SDEs) with a superlinearly growing and piecewise continuous drift coefficient. Existence and uniqueness of strong solutions of such SDEs are obtained. Furthermore, the…

Probability · Mathematics 2022-06-02 Huimin Hu , Siqing Gan

This paper is concerned with the numerical approximation of stochastic ordinary differential equations, which satisfy a global monotonicity condition. This condition includes several equations with super-linearly growing drift and diffusion…

Numerical Analysis · Mathematics 2015-10-09 Wolf-Jürgen Beyn , Elena Isaak , Raphael Kruse

For Ait-Sahalia-type interest rate model with Poisson jumps, we are interested in strong convergence of a novel time-stepping method, called transformed jump-adapted backward Euler method (TJABEM). Under certain hypothesis, the considered…

Numerical Analysis · Mathematics 2023-10-02 Ziyi Lei , Siqing Gan , Jing Liu

We study the strong approximation of the solutions to singular stochastic kinetic equations (also referred to as second-order SDEs) driven by $\alpha$-stable processes, using an Euler-type scheme inspired by [11]. For these equations, the…

Probability · Mathematics 2025-11-18 Chengcheng Ling

A new class of explicit Euler schemes, which approximate stochastic differential equations (SDEs) with superlinearly growing drift and diffusion coefficients, is proposed in this article. It is shown, under very mild conditions, that these…

Probability · Mathematics 2016-09-05 Sotirios Sabanis

To construct positivity-preserving numerical methods, a vast majority of existing works employ transformation techniques such as the Lamperti transformation or logarithmic transformation. However, using these techniques often leads to the…

Numerical Analysis · Mathematics 2025-08-26 Xingwei Hu , Xinjie Dai , Aiguo Xiao

We propose a new scheme for the long time approximation of a diffusion when the drift vector field is not globally Lipschitz. Under this assumption, regular explicit Euler scheme --with constant or decreasing step-- may explode and implicit…

Probability · Mathematics 2018-02-20 Vincent Lemaire

This paper is concerned with the numerical approximation of stochastic mechanical systems with nonlinear holonomic constraints. Such systems are described by second order stochastic differential-algebraic equations involving an implicitly…

Probability · Mathematics 2017-09-26 Felix Lindner , Holger Stroot

A class of implicit Milstein type methods is introduced and analyzed in the present article for stochastic differential equations (SDEs) with non-globally Lipschitz drift and diffusion coefficients. By incorporating a pair of method…

Numerical Analysis · Mathematics 2023-03-21 Xiaojie Wang

In this paper the numerical approximation of stochastic differential equations satisfying a global monotonicity condition is studied. The strong rate of convergence with respect to the mean square norm is determined to be $\frac{1}{2}$ for…

Numerical Analysis · Mathematics 2017-09-01 Adam Andersson , Raphael Kruse

In this note we work on the construction of positive preserving numerical schemes for systems of stochastic differential equations. We use the semi discrete idea that we have proposed before proposing now a numerical scheme that preserves…

Numerical Analysis · Mathematics 2013-10-10 Nikolaos Halidias

We construct a positivity-preserving Lie--Trotter splitting scheme with finite difference discretization in space for approximating the solutions to a class of nonlinear stochastic heat equations with multiplicative space-time white noise.…

Numerical Analysis · Mathematics 2023-02-20 Charles-Edouard Bréhier , David Cohen , Johan Ulander

In this paper, we analyze the drift-implicit (or backward) Euler numerical scheme for a class of stochastic differential equations with unbounded drift driven by an arbitrary $\lambda$-H\"older continuous process, $\lambda\in(0,1)$. We…

Probability · Mathematics 2022-04-20 Giulia Di Nunno , Yuliya Mishura , Anton Yurchenko-Tytarenko

We analyze, from the viewpoint of positivity preservation, certain discretizations of a fundamental partial differential equation, the one-dimensional advection equation with periodic boundary condition. The full discretization is obtained…

Numerical Analysis · Mathematics 2021-05-18 Yiannis Hadjimichael , David I. Ketcheson , Lajos Lóczi

We consider the long-time behavior of an explicit tamed Euler scheme applied to a class of stochastic differential equations driven by additive noise, under a one-sided Lipschitz continuity condition. The setting encompasses drift…

Numerical Analysis · Mathematics 2020-10-02 Charles-Edouard Bréhier

The strong rate of convergence of the Euler-Maruyama scheme for nondegenerate SDEs with irregular drift coefficients is considered. In the case of $\alpha$-H\"older drift in the recent literature the rate $\alpha/2$ was proved in many…

Probability · Mathematics 2021-03-09 Konstantinos Dareiotis , Máté Gerencsér

In the recent breakthrough work \cite{xu2023lack}, a rigorous numerical analysis was conducted on the numerical solution of a scalar ODE containing a cubic polynomial derived from the Allen-Cahn equation. It was found that only the implicit…

Numerical Analysis · Mathematics 2024-11-12 Pansheng Li , Dongling Wang

This article is concerned with the multilevel Monte Carlo (MLMC) methods for approximating expectations of some functions of the solution to the Heston 3/2-model from mathematical finance, which takes values in $(0, \infty)$ and possesses…

Numerical Analysis · Mathematics 2024-03-12 Xiaojuan Wu , Siqing Gan

We consider mean-reverting CIR/CEV processes with delay and jumps used as models on the financial markets. These processes are solutions of stochastic differential equations with jumps, which have no explicit solutions. We prove the…

Numerical Analysis · Mathematics 2019-04-09 Ioannis S Stamatiou