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In this paper we introduce a deep learning method for pricing and hedging American-style options. It first computes a candidate optimal stopping policy. From there it derives a lower bound for the price. Then it calculates an upper bound, a…

Computational Finance · Quantitative Finance 2021-03-23 Sebastian Becker , Patrick Cheridito , Arnulf Jentzen

We propose a numerical method for solving high dimensional fully nonlinear partial differential equations (PDEs). Our algorithm estimates simultaneously by backward time induction the solution and its gradient by multi-layer neural…

Optimization and Control · Mathematics 2021-01-27 Huyen Pham , Xavier Warin , Maximilien Germain

Mechanistic knowledge about the physical world is virtually always expressed via partial differential equations (PDEs). Recently, there has been a surge of interest in probabilistic PDE solvers -- Bayesian statistical models mostly based on…

Machine Learning · Computer Science 2025-03-12 Tim Weiland , Marvin Pförtner , Philipp Hennig

Linear partial differential equations (PDEs) are an important, widely applied class of mechanistic models, describing physical processes such as heat transfer, electromagnetism, and wave propagation. In practice, specialized numerical…

Machine Learning · Computer Science 2024-04-30 Marvin Pförtner , Ingo Steinwart , Philipp Hennig , Jonathan Wenger

The Heston stochastic volatility model is a widely used tool in financial mathematics for pricing European options. However, its calibration remains computationally intensive and sensitive to local minima due to the model's nonlinear…

Analysis of PDEs · Mathematics 2026-04-21 Arman Zadgar , Somayeh Fallah , Farshid Mehrdoust , Juan E. Trinidad Segovia

Randomized neural networks (RNN) are a variation of neural networks in which the hidden-layer parameters are fixed to randomly assigned values and the output-layer parameters are obtained by solving a linear system by least squares. This…

Numerical Analysis · Mathematics 2022-06-14 Jingbo Sun , Suchuan Dong , Fei Wang

The main aim of this study is to introduce a 2-layered Artificial Neural Network (ANN) for solving the Black-Scholes partial differential equation (PDE) of either fractional or ordinary orders. Firstly, a discretization method is employed…

Machine Learning · Computer Science 2021-08-04 Saeed Bajalan , Nastaran Bajalan

Partial differential equations (PDEs) provide a mathematical foundation for simulating and understanding intricate behaviors in both physical sciences and engineering. With the growing capabilities of deep learning, data$-$driven approaches…

Machine Learning · Computer Science 2025-10-14 Narayan S Iyer , Bivas Bhaumik , Ram S Iyer , Satyasaran Changdar

Divergence-free discontinuous Galerkin (DG) finite element methods offer a suitable discretization for the pointwise divergence-free numerical solution of Borrvall and Petersson's model for the topology optimization of fluids in Stokes flow…

Numerical Analysis · Mathematics 2022-02-22 Ioannis P. A. Papadopoulos

The approximation of solutions of partial differential equations (PDEs) with numerical algorithms is a central topic in applied mathematics. For many decades, various types of methods for this purpose have been developed and extensively…

Numerical Analysis · Mathematics 2024-08-26 Lukas Gonon , Arnulf Jentzen , Benno Kuckuck , Siyu Liang , Adrian Riekert , Philippe von Wurstemberger

Recent progress in scientific machine learning (SciML) has opened up the possibility of training novel neural network architectures that solve complex partial differential equations (PDEs). Several (nearly data free) approaches have been…

We propose a new deep learning algorithm for solving high-dimensional parabolic integro-differential equations (PIDEs) and forward-backward stochastic differential equations with jumps (FBSDEJs). This novel algorithm can be viewed as an…

Numerical Analysis · Mathematics 2025-10-28 Wansheng Wang , Jiangtao Pan , Jie Wang , Zaijun Ye

The demand for substantial increases in the spatial resolution of global weather- and climate- prediction models makes it necessary to use numerically efficient and highly scalable algorithms to solve the equations of large scale…

Distributed, Parallel, and Cluster Computing · Computer Science 2015-06-16 Eike H. Mueller , Robert Scheichl

We investigate solving partial integro-differential equations (PIDEs) using unsupervised deep learning in this paper. To price options, assuming underlying processes follow Levy processes, we require to solve PIDEs. In supervised deep…

Computational Finance · Quantitative Finance 2022-07-04 Ali Hirsa , Weilong Fu

The accuracy of solving partial differential equations (PDEs) on coarse grids is greatly affected by the choice of discretization schemes. In this work, we propose to learn time integration schemes based on neural networks which satisfy…

Numerical Analysis · Mathematics 2023-10-17 Xinxin Yan , Zhideng Zhou , Xiaohan Cheng , Xiaolei Yang

Recent works have shown that deep neural networks can be employed to solve partial differential equations, giving rise to the framework of physics informed neural networks. We introduce a generalization for these methods that manifests as a…

Numerical Analysis · Mathematics 2021-03-25 Remco van der Meer , Cornelis Oosterlee , Anastasia Borovykh

We propose a partial differential-integral equation (PDE) framework for deep neural networks (DNNs) and their associated learning problem by taking the continuum limits of both network width and depth. The proposed model captures the…

Optimization and Control · Mathematics 2024-11-12 Peter Markowich , Simone Portaro

Recently, neural networks have been widely applied for solving partial differential equations (PDEs). Although such methods have been proven remarkably successful on practical engineering problems, they have not been shown, theoretically or…

Numerical Analysis · Mathematics 2023-03-27 Jonathan W. Siegel , Qingguo Hong , Xianlin Jin , Wenrui Hao , Jinchao Xu

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

Heterogeneous computing and exploiting integrated CPU-GPU architectures has become a clear current trend since the flattening of Moore's Law. In this work, we propose a numerical and algorithmic re-design of a p-adaptive quadrature-free…

Mathematical Software · Computer Science 2023-11-21 Sara Faghih-Naini , Vadym Aizinger , Sebastian Kuckuk , Richard Angersbach , Harald Köstler