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We consider the supervised learning problem of learning the price of an option or the implied volatility given appropriate input data (model parameters) and corresponding output data (option prices or implied volatilities). The majority of…

Computational Finance · Quantitative Finance 2026-01-30 Serena Della Corte , Laurens Van Mieghem , Antonis Papapantoleon , Jonas Papazoglou-Hennig

We introduce a fast and flexible Machine Learning (ML) framework for pricing derivative products whose valuation depends on volatility surfaces. By parameterizing volatility surfaces with the 5-parameter stochastic volatility inspired (SVI)…

Pricing of Securities · Quantitative Finance 2025-05-30 Lijie Ding , Egang Lu , Kin Cheung

Solving partial differential equations (PDEs) is a required step in the simulation of natural and engineering systems. The associated computational costs significantly increase when exploring various scenarios, such as changes in initial or…

This study focuses on addressing the challenges of solving analytically intractable differential equations that arise in scientific and engineering fields such as Hamilton-Jacobi-Bellman. Traditional numerical methods and neural network…

Numerical Analysis · Mathematics 2023-08-23 Daniel Sevcovic , Cyril Izuchukwu Udeani

Classical solvable stochastic volatility models (SVM) use a CEV process for instantaneous variance where the CEV parameter $\gamma$ takes just few values: 0 - the Ornstein-Uhlenbeck process, 1/2 - the Heston (or square root) process, 1-…

Pricing of Securities · Quantitative Finance 2012-07-03 Andrey Itkin

The Stochastic Volatility (SV) model and its variants are widely used in the financial sector while recurrent neural network (RNN) models are successfully used in many large-scale industrial applications of Deep Learning. Our article…

Econometrics · Economics 2022-01-25 Trong-Nghia Nguyen , Minh-Ngoc Tran , David Gunawan , R. Kohn

We propose a multi-scale stochastic volatility model in which a fast mean-reverting factor of volatility is built on top of the Heston stochastic volatility model. A singular pertubative expansion is then used to obtain an approximation for…

Pricing of Securities · Quantitative Finance 2012-05-15 Jean-Pierre Fouque , Matthew Lorig

Current physics-informed (standard or deep operator) neural networks still rely on accurately learning the initial and/or boundary conditions of the system of differential equations they are solving. In contrast, standard numerical methods…

Machine Learning · Computer Science 2024-06-25 Rüdiger Brecht , Dmytro R. Popovych , Alex Bihlo , Roman O. Popovych

Deep kernel learning combines the non-parametric flexibility of kernel methods with the inductive biases of deep learning architectures. We propose a novel deep kernel learning model and stochastic variational inference procedure which…

Machine Learning · Statistics 2016-11-03 Andrew Gordon Wilson , Zhiting Hu , Ruslan Salakhutdinov , Eric P. Xing

A new data-driven method for operator learning of stochastic differential equations(SDE) is proposed in this paper. The central goal is to solve forward and inverse stochastic problems more effectively using limited data. Deep operator…

Machine Learning · Statistics 2022-04-08 Jiahao Zhang , Shiqi Zhang , Guang Lin

Exact simulation schemes under the Heston stochastic volatility model (e.g., Broadie-Kaya and Glasserman-Kim) suffer from computationally expensive modified Bessel function evaluations. We propose a new exact simulation scheme without the…

Mathematical Finance · Quantitative Finance 2023-12-18 Jaehyuk Choi , Yue Kuen Kwok

Existing architectures for operator learning require that the number and locations of sensors (where the input functions are evaluated) remain the same across all training and test samples, significantly restricting the range of their…

Machine Learning · Computer Science 2022-05-24 Michael Prasthofer , Tim De Ryck , Siddhartha Mishra

Physical systems whose dynamics are governed by partial differential equations (PDEs) find applications in numerous fields, from engineering design to weather forecasting. The process of obtaining the solution from such PDEs may be…

Machine Learning · Computer Science 2022-09-21 Pratyush Bhatt , Yash Kumar , Azzeddine Soulaimani

Deep Learning Reduced Order Models (ROMs) are becoming increasingly popular as surrogate models for parametric partial differential equations (PDEs) due to their ability to handle high-dimensional data, approximate highly nonlinear…

Machine Learning · Computer Science 2026-04-09 Iva Mikuš , Boris Muha , Domagoj Vlah

In this paper, we investigate the applications of operator learning, specifically DeepONet, for solving nonlinear partial differential equations (PDEs). Unlike conventional function learning methods that require training separate neural…

Machine Learning · Computer Science 2025-09-30 Yahong Yang

Fast and accurate predictions for complex physical dynamics are a significant challenge across various applications. Real-time prediction on resource-constrained hardware is even more crucial in real-world problems. The deep operator…

Machine Learning · Computer Science 2023-12-27 Jae Yong Lee , Sung Woong Cho , Hyung Ju Hwang

Unlike classical artificial neural networks, which require retraining for each new set of parametric inputs, the Deep Operator Network (DeepONet), a lately introduced deep learning framework, approximates linear and nonlinear solution…

Computational Engineering, Finance, and Science · Computer Science 2024-03-25 Shashank Kushwaha , Jaewan Park , Seid Koric , Junyan He , Iwona Jasiuk , Diab Abueidda

Traditional data-driven deep learning models often struggle with high training costs, error accumulation, and poor generalizability in complex physical processes. Physics-informed deep learning (PiDL) addresses these challenges by…

Machine Learning · Computer Science 2024-01-17 Xin-Yang Liu , Min Zhu , Lu Lu , Hao Sun , Jian-Xun Wang

While time series momentum is a well-studied phenomenon in finance, common strategies require the explicit definition of both a trend estimator and a position sizing rule. In this paper, we introduce Deep Momentum Networks -- a hybrid…

Machine Learning · Statistics 2020-09-29 Bryan Lim , Stefan Zohren , Stephen Roberts

Neural networks have been applied to control problems, typically by combining data, differential equation residuals, and objective costs in the training loss or by incorporating auxiliary architectural components. Instead, we propose a…

Optimization and Control · Mathematics 2026-04-10 Oliver G. S. Lundqvist , Fabricio Oliveira