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Stochastic volatility models, where the volatility is a stochastic process, can capture most of the essential stylized facts of implied volatility surfaces and give more realistic dynamics of the volatility smile/skew. However, they come…

Computational Finance · Quantitative Finance 2023-09-26 Abir Sridi , Paul Bilokon

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

In recent years, deep learning for modeling physical phenomena which can be described by partial differential equations (PDEs) have received significant attention. For example, for learning Hamiltonian mechanics, methods based on deep…

Machine Learning · Computer Science 2025-02-28 Baige Xu , Yusuke Tanaka , Takashi Matsubara , Takaharu Yaguchi

We propose a new financial model, the stochastic volatility model with sticky drawdown and drawup processes (SVSDU model), which enables us to capture the features of winning and losing streaks that are common across financial markets but…

Mathematical Finance · Quantitative Finance 2025-03-20 Yuhao Liu , Pingping Jiang , Gongqiu Zhang

Volatility for financial assets returns can be used to gauge the risk for financial market. We propose a deep stochastic volatility model (DSVM) based on the framework of deep latent variable models. It uses flexible deep learning models to…

Machine Learning · Computer Science 2021-02-26 Xiuqin Xu , Ying Chen

Stochastic differential equation (SDE) models are the foundation for pricing and hedging financial derivatives. The drift and volatility functions in SDE models are typically chosen to be algebraic functions with a small number (less than…

Computational Finance · Quantitative Finance 2024-06-04 Lei Fan , Justin Sirignano

We develop a novel deep learning approach for pricing European options in diffusion models, that can efficiently handle high-dimensional problems resulting from Markovian approximations of rough volatility models. The option pricing partial…

Computational Finance · Quantitative Finance 2025-04-04 Antonis Papapantoleon , Jasper Rou

We propose a gradient-based deep learning framework to calibrate the Heston option pricing model (Heston, 1993). Our neural network, henceforth deep differential network (DDN), learns both the Heston pricing formula for plain-vanilla…

Computational Finance · Quantitative Finance 2026-05-15 Giovanni Amici , Marco Morandotti , Chen Zhang

Operator learning has become a powerful tool in machine learning for modeling complex physical systems governed by partial differential equations (PDEs). Although Deep Operator Networks (DeepONet) show promise, they require extensive data…

Machine Learning · Computer Science 2024-12-09 Xinling Yu , Sean Hooten , Ziyue Liu , Yequan Zhao , Marco Fiorentino , Thomas Van Vaerenbergh , Zheng Zhang

Deep operator network (DeepONet) has shown significant promise as surrogate models for systems governed by partial differential equations (PDEs), enabling accurate mappings between infinite-dimensional function spaces. However, when applied…

Machine Learning · Computer Science 2025-10-29 Sharmila Karumuri , Lori Graham-Brady , Somdatta Goswami

We present a novel framework combining Deep Operator Networks (DeepONets) with Physics-Informed Neural Networks (PINNs) to solve partial differential equations (PDEs) and estimate their unknown parameters. By integrating data-driven…

Machine Learning · Computer Science 2025-08-05 Amogh Raj , Carol Eunice Gudumotou , Sakol Bun , Keerthana Srinivasa , Arash Sarshar

Deep Operator Network (DeepONet), a recently introduced deep learning operator network, approximates linear and nonlinear solution operators by taking parametric functions (infinite-dimensional objects) as inputs and mapping them to…

Computational Engineering, Finance, and Science · Computer Science 2023-10-12 Junyan He , Shashank Kushwaha , Jaewan Park , Seid Koric , Diab Abueidda , Iwona Jasiuk

Neural network based data-driven operator learning schemes have shown tremendous potential in computational mechanics. DeepONet is one such neural network architecture which has gained widespread appreciation owing to its excellent…

Machine Learning · Statistics 2022-06-14 Shailesh Garg , Souvik Chakraborty

In this paper, we price European Call three different option pricing models, where the volatility is dynamically changing i.e. non constant. In stochastic volatility (SV) models for option pricing a closed form approximation technique is…

Pricing of Securities · Quantitative Finance 2023-09-19 Natasha Latif , Shafqat Ali Shad , Muhammad Usman , Chandan Kumar , Bahman B Motii , MD Mahfuzer Rahman , Khuram Shafi , Zahra Idrees

The deep operator networks (DeepONet), a class of neural operators that learn mappings between function spaces, have recently been developed as surrogate models for parametric partial differential equations (PDEs). In this work we propose a…

Machine Learning · Computer Science 2024-10-31 Yuan Qiu , Nolan Bridges , Peng Chen

Inverse problems involving partial differential equations (PDEs) can be seen as discovering a mapping from measurement data to unknown quantities, often framed within an operator learning approach. However, existing methods typically rely…

Numerical Analysis · Mathematics 2025-02-10 Sung Woong Cho , Hwijae Son

Accurate modeling of personalized cardiovascular dynamics is crucial for non-invasive monitoring and therapy planning. State-of-the-art physics-informed neural network (PINN) approaches employ deep, multi-branch architectures with…

Machine Learning · Computer Science 2025-09-23 Ryan Chappell , Chayan Banerjee , Kien Nguyen , Clinton Fookes

In this work, we present a machine learning approach for reducing the error when numerically solving time-dependent partial differential equations (PDE). We use a fully convolutional LSTM network to exploit the spatiotemporal dynamics of…

Machine Learning · Computer Science 2020-02-11 Ben Stevens , Tim Colonius

Deep learning is a powerful tool whose applications in quantitative finance are growing every day. Yet, artificial neural networks behave as black boxes and this hinders validation and accountability processes. Being able to interpret the…

Pricing of Securities · Quantitative Finance 2021-04-20 Damiano Brigo , Xiaoshan Huang , Andrea Pallavicini , Haitz Saez de Ocariz Borde

Traditional 2D hydraulic models face significant computational challenges that limit their applications that are time-sensitive or require many model evaluations. This study presents a physics-informed Deep Operator Network (DeepONet)…

Fluid Dynamics · Physics 2026-01-14 Xiaofeng Liu , Yong G. Lai
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