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In this paper, we undertake an investigation into the utility maximization problem faced by an economic agent who possesses the option to switch jobs, within a scenario featuring the presence of a mandatory retirement date. The agent needs…

Optimization and Control · Mathematics 2023-09-25 Zhou Yang , Junkee Jeon

We consider derivatives written on multiple underlyings in a one-period financial market, and we are interested in the computation of model-free upper and lower bounds for their arbitrage-free prices. We work in a completely realistic…

Optimization and Control · Mathematics 2022-01-13 Ariel Neufeld , Antonis Papapantoleon , Qikun Xiang

We develop a martingale approximation framework yielding quantitative maximal large deviations estimates for invertible dynamical systems. From suitable decay of correlations, we deduce these estimates and, as an application, we obtain…

Dynamical Systems · Mathematics 2026-05-08 José F. Alves , João S. Matias , Ian Melbourne

We introduce an efficient computational framework for solving a class of multi-marginal martingale optimal transport problems, which includes many robust pricing problems of large financial interest. Such problems are typically…

Computational Finance · Quantitative Finance 2025-03-21 Linn Engström , Sigrid Källblad , Johan Karlsson

It is shown that the ratio between the expected diameter of an L2-bounded martingale and the standard deviation of its last term cannot exceed sqrt(3). Moreover, a one-parameter family of stopping times on standard Brownian Motion is…

Probability · Mathematics 2008-07-24 Lester E. Dubins , David Gilat , Isaac Meilijson

We study safe reinforcement learning in finite-horizon linear mixture constrained Markov decision processes (CMDPs) with adversarial rewards under full-information feedback and an unknown transition kernel. We propose a primal-dual policy…

Machine Learning · Computer Science 2026-03-31 Kihyun Yu , Seoungbin Bae , Dabeen Lee

This paper demonstrates a practical method for computing the solution of an expectation-constrained robust maximization problem with immediate applications to model-free no-arbitrage bounds and super-replication values for many financial…

Mathematical Finance · Quantitative Finance 2016-10-06 Christopher W. Miller

This paper presents a widely applicable approach to solving (multi-marginal, martingale) optimal transport and related problems via neural networks. The core idea is to penalize the optimization problem in its dual formulation and reduce it…

Optimization and Control · Mathematics 2019-01-28 Stephan Eckstein , Michael Kupper

We present experimental work on a primal-dual framework simultaneously approximating maximum cut and weighted fractional cut-covering instances. In this primal-dual framework, we solve a semidefinite programming (SDP) relaxation to either…

Optimization and Control · Mathematics 2026-04-21 Nathan Benedetto Proença , Marcel K. de Carli Silva , Cristiane M. Sato , Levent Tunçel

This article studies deep neural network expression rates for optimal stopping problems of discrete-time Markov processes on high-dimensional state spaces. A general framework is established in which the value function and continuation…

Probability · Mathematics 2022-10-20 Lukas Gonon

In recent years, the state-of-the-art in deep learning has been dominated by very large models that have been pre-trained on vast amounts of data. The paradigm is very simple: investing more computational resources (optimally) leads to…

Machine Learning · Computer Science 2024-05-24 Sotiris Anagnostidis , Gregor Bachmann , Imanol Schlag , Thomas Hofmann

Interpretable and explainable machine learning has seen a recent surge of interest. We focus on safety as a key motivation behind the surge and make the relationship between interpretability and safety more quantitative. Toward assessing…

Machine Learning · Computer Science 2022-11-04 Dennis Wei , Rahul Nair , Amit Dhurandhar , Kush R. Varshney , Elizabeth M. Daly , Moninder Singh

Practical online learning tasks are often naturally defined on unconstrained domains, where optimal algorithms for general convex losses are characterized by the notion of comparator adaptivity. In this paper, we design such algorithms in…

Machine Learning · Computer Science 2022-10-13 Zhiyu Zhang , Ashok Cutkosky , Ioannis Ch. Paschalidis

Deriving sharp and computable upper bounds of the Lipschitz constant of deep neural networks is crucial to formally guarantee the robustness of neural-network based models. We analyse three existing upper bounds written for the $l^2$ norm.…

Machine Learning · Computer Science 2024-10-29 Moreno Pintore , Bruno Després

We consider the computation of model-free bounds for multi-asset options in a setting that combines dependence uncertainty with additional information on the dependence structure. More specifically, we consider the setting where the…

Pricing of Securities · Quantitative Finance 2024-04-04 Evangelia Dragazi , Shuaiqiang Liu , Antonis Papapantoleon

We establish a rigorous duality theory, under No Unbounded Profit with Bounded Risk, for an infinite horizon problem of optimal consumption in the presence of an income stream that can terminate randomly at an exponentially distributed…

Mathematical Finance · Quantitative Finance 2021-11-30 Ashley Davey , Michael Monoyios , Harry Zheng

This paper investigates the challenges of optimal online policy learning under missing data. State-of-the-art algorithms implicitly assume that rewards are always observable. I show that when rewards are missing at random, the Upper…

Econometrics · Economics 2025-07-29 Filippo Palomba

We prove optimal ${L}^2$ bounds for a pair of Hilbert space valued differentially subordinate martingales under a change of law. The change of law is given by a process called a weight and sharpness in this context refers to the optimal…

Probability · Mathematics 2016-11-22 Komla Domelevo , Stefanie Petermichl

We present a machine learning approach for finding minimal equivalent martingale measures for markets simulators of tradable instruments, e.g. for a spot price and options written on the same underlying. We extend our results to markets…

Computational Finance · Quantitative Finance 2022-01-13 Hans Buehler , Phillip Murray , Mikko S. Pakkanen , Ben Wood

We present here a regress later based Monte Carlo approach that uses neural networks for pricing high-dimensional contingent claims. The choice of specific architecture of the neural networks used in the proposed algorithm provides for…

Computational Finance · Quantitative Finance 2019-11-27 Vikranth Lokeshwar , Vikram Bhardawaj , Shashi Jain