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Related papers: Asymptotic error for the Milstein scheme for SDEs …

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In this paper we study the rate of convergence of a symmetrized version of the Milstein scheme applied to the solution of the one dimensional SDE $$X_t = x_0 + \int_{0}^t{b(X_s)ds}+\int_{0}^t{\sigma |X_s|^\alpha dW_s}, \;x_0>0,\;\sigma>0,\;…

Probability · Mathematics 2018-11-28 Mireille Bossy , Hector Olivero Quinteros

In this paper, the weak convergence about the discretization error of stochastic iterated integrals in the Skorohod sense are studied, while the integrands and integrators of iterated integrals are supposed to be semimartingales with jumps.…

Probability · Mathematics 2017-06-06 Yuping Song , Hanchao Wang

We deal with pointwise approximation of solutions of scalar stochastic differential equations in the presence of informational noise about underlying drift and diffusion coefficients. We define a randomized derivative-free version of…

Numerical Analysis · Mathematics 2020-10-06 Paweł M. Morkisz , Paweł Przybyłowicz

We propose a new tamed Milstein-type scheme for stochastic differential equation with Markovian switching when drift coefficient is assumed to grow super-linearly. The strong rate of convergence is shown to be equal to $1.0$ under mild…

Probability · Mathematics 2019-09-18 Chaman Kumar , Tejinder Kumar

This paper focuses on the randomized Milstein scheme for approximating solutions to stochastic Volterra integral equations with weakly singular kernels, where the drift coefficients are non-differentiable. An essential component of the…

Numerical Analysis · Mathematics 2023-12-07 Zhaohang Wang , Zhuoqi Liu , Shuaibin Gao , Junhao Hu

In this work, we present a general Milstein-type scheme for McKean-Vlasov stochastic differential equations (SDEs) driven by Brownian motion and Poisson random measure and the associated system of interacting particles where drift,…

Probability · Mathematics 2025-01-08 Sani Biswas , Chaman Kumar , Christoph Reisinger , Verena Schwarz

We investigate the error of the randomized Milstein algorithm for solving scalar jump-diffusion stochastic differential equations. We provide a complete error analysis under substantially weaker assumptions than known in the literature. In…

Numerical Analysis · Mathematics 2023-12-06 Paweł Przybyłowicz , Verena Schwarz , Michaela Szölgyenyi

We consider a semi-Lagrangian scheme for solving the minimum time problem, with a given target, and the associated eikonal type equation. We first use a discrete time deterministic optimal control problem interpretation of the time…

Optimization and Control · Mathematics 2024-07-10 Marianne Akian , Shanqing Liu

This paper is concerned with asymptotic behavior of a variety of functionals of increments of continuous semimartingales. Sampling times are assumed to follow a rather general discretization scheme. If an underlying semimartingale is…

Probability · Mathematics 2024-10-04 Michael Levine , Xiaoguang Wang , Jian Frank Zou

We present a method for approximating solutions of Stochastic Differential Equations (SDEs) with arbitrary rates. This approximation is derived for bounded and measurable test functions. Specifically, we demonstrate that, leveraging the…

Probability · Mathematics 2024-03-27 Clément Rey

In this article, we propose a Milstein finite difference scheme for a stochastic partial differential equation (SPDE) describing a large particle system. We show, by means of Fourier analysis, that the discretisation on an unbounded domain…

Numerical Analysis · Mathematics 2012-04-09 Michael B. Giles , Christoph Reisinger

Kruse and Wu [Math. Comp. 88 (2019) 2793--2825] proposed a fully discrete randomized Galerkin finite element method for semilinear stochastic evolution equations (SEEs) driven by additive noise and showed that this method attains a temporal…

Numerical Analysis · Mathematics 2026-02-12 Xiao Qi , Yue Wu , Yubin Yan

We study the $L^p$ rate of convergence of the Milstein scheme for SDEs when the drift coefficients possess only H\"older regularity. If the diffusion is elliptic and sufficiently regular, we obtain rates consistent with the additive case.…

Probability · Mathematics 2024-12-12 Máté Gerencsér , Gerald Lampl , Chengcheng Ling

We consider the stochastic variational inequality problem in which the map is expectation-valued in a component-wise sense. Much of the available convergence theory and rate statements for stochastic approximation schemes are limited to…

Optimization and Control · Mathematics 2019-11-25 Aswin Kannan , Uday V. Shanbhag

We extend the taming techniques developed in \cite{konstantinos2014,sabanis2013} to construct explicit Milstein schemes that numerically approximate L\'evy driven stochastic differential equations with super-linearly growing drift…

Probability · Mathematics 2015-12-24 Chaman Kumar , Sotirios Sabanis

We propose a straightforward and effective method for discretizing multi-dimensional diffusion processes as an extension of Milstein scheme. The new scheme is explicitly given and can be simulated using Gaussian variates, requiring the same…

Numerical Analysis · Mathematics 2024-09-04 Yuga Iguchi , Toshihiro Yamada

In the field of computational finance, one is commonly interested in the expected value of a financial derivative whose payoff depends on the solution of stochastic differential equations (SDEs). For multi-dimensional SDEs with…

Numerical Analysis · Mathematics 2024-09-12 Chenxu Pang , Xiaojie Wang

This paper focuses on two variants of the Milstein scheme, namely the split-step backward Milstein method and a newly proposed projected Milstein scheme, applied to stochastic differential equations which satisfy a global monotonicity…

Numerical Analysis · Mathematics 2017-01-16 Wolf-Jürgen Beyn , Elena Isaak , Raphael Kruse

We study pathwise approximation of strong solutions of scalar stochastic differential equations (SDEs) at a single time in the presence of discontinuities of the drift coefficient. Recently, it has been shown by M\"uller-Gronbach and…

Probability · Mathematics 2024-02-23 Simon Ellinger

Motivated by weak convergence results in the paper of Takahashi and Yoshida (2005), we show strong convergence for an accelerated Euler-Maruyama scheme applied to perturbed stochastic differential equations. The Milstein scheme with the…

Computational Finance · Quantitative Finance 2013-12-02 Hideyuki Tanaka , Toshihiro Yamada