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We apply results of Malliavin-Thalmaier-Watanabe for strong and weak Taylor expansions of solutions of perturbed stochastic differential equations (SDEs). In particular, we work out weight expressions for the Taylor coefficients of the…

计算金融 · 定量金融 2008-12-10 Maria Siopacha , Josef Teichmann

The LIBOR market model is very popular for pricing interest rate derivatives, but is known to have several pitfalls. In addition, if the model is driven by a jump process, then the complexity of the drift term is growing exponentially fast…

计算金融 · 定量金融 2015-03-19 Antonis Papapantoleon , John Schoenmakers , David Skovmand

The aim of this work is to provide fast and accurate approximation schemes for the Monte Carlo pricing of derivatives in LIBOR market models. Standard methods can be applied to solve the stochastic differential equations of the successive…

计算金融 · 定量金融 2011-07-20 Antonis Papapantoleon , David Skovmand

We construct an efficient integrator for stochastic differential systems driven by Levy processes. An efficient integrator is a strong approximation that is more accurate than the corresponding stochastic Taylor approximation, to all orders…

概率论 · 数学 2019-04-24 Charles Curry , Kurusch Ebrahimi-Fard , Simon J. A. Malham , Anke Wiese

We extend the taming techniques for explicit Euler approximations of stochastic differential equations (SDEs) driven by L\'evy noise with super-linearly growing drift coefficients. Strong convergence results are presented for the case of…

概率论 · 数学 2015-01-23 Konstantinos Dareiotis , Chaman Kumar , Sotirios Sabanis

Weak approximations have been developed to calculate the expectation value of functionals of stochastic differential equations, and various numerical discretization schemes (Euler, Milshtein) have been studied by many authors. We present a…

概率论 · 数学 2009-08-10 Hideyuki Tanaka , Arturo Kohatsu-Higa

In this paper, enlightened by the asymptotic expansion methodology developed by Li(2013b) and Li and Chen (2016), we propose a Taylor-type approximation for the transition densities of the stochastic differential equations (SDEs) driven by…

计算金融 · 定量金融 2020-03-16 Fan Jiang , Xin Zang , Jingping Yang

Semilinear hyperbolic stochastic partial differential equations (SPDEs) find widespread applications in the natural and engineering sciences. However, the traditional Gaussian setting may prove too restrictive, as phenomena in mathematical…

数值分析 · 数学 2023-07-04 Andrea Barth , Andreas Stein

We study a class of stochastic differential equations driven by a possibly tempered L{\'e}vy process, under mild conditions on the coefficients. We prove the well-posedness of the associated martingale problem as well as the existence of…

概率论 · 数学 2016-02-01 L Huang

The dynamics of rough differential equations (RDEs) has recently received a lot of interest. For example, the existence of local random center manifolds for RDEs has been established. In this work, we present an approximation for local…

概率论 · 数学 2025-10-02 Alexandra Blessing , Dennis Rudik

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…

概率论 · 数学 2024-03-27 Clément Rey

We investigate some recursive procedures based on an exact or ``approximate'' Euler scheme with decreasing step in vue to computation of invariant measures of solutions to S.D.E. driven by a L\'evy process. Our results are valid for a large…

概率论 · 数学 2008-04-02 Fabien Panloup

The aim of this work is to provide fast and accurate approximation schemes for the Monte-Carlo pricing of derivatives in the L\'evy LIBOR model of Eberlein and \"Ozkan (2005). Standard methods can be applied to solve the stochastic…

计算金融 · 定量金融 2011-06-07 Antonis Papapantoleon , David Skovmand

We develope a perturbation theory for stochastic differential equations (SDEs) by which we mean both stochastic ordinary differential equations (SODEs) and stochastic partial differential equations (SPDEs). In particular, we estimate the $…

概率论 · 数学 2020-11-25 Martin Hutzenthaler , Arnulf Jentzen

Consider the following stochastic differential equation (SDE) $$dX_t = b(t,X_{t-}) \, dt+ dL_t, \quad X_0 = x,$$ driven by a $d$-dimensional L\'evy process $(L_t)_{t \geq 0}$. We establish conditions on the L\'evy process and the drift…

概率论 · 数学 2020-05-01 Franziska Kühn , René L. Schilling

Motivated by applications to a manifold of semilinear and quasilinear stochastic partial differential equations (SPDEs) we establish the existence and uniqueness of strong solutions to coercive and locally monotone SPDEs driven by L\'{e}vy…

偏微分方程分析 · 数学 2013-05-22 Zdzisław Brzeźniak , Wei Liu , Jiahui Zhu

It is known that the transition probabilities of a solution to a classical It\^o stochastic differential equation (SDE) satisfy in the weak sense the associated Kolmogorov equation. The Kolmogorov equation is a partial differential equation…

概率论 · 数学 2010-06-24 Marjorie G. Hahn , Kei Kobayashi , Sabir Umarov

We propose a fast and scalable optimization method to solve chance or probabilistic constrained optimization problems governed by partial differential equations (PDEs) with high-dimensional random parameters. To address the critical…

最优化与控制 · 数学 2020-11-20 Peng Chen , Omar Ghattas

Semilinear, $N-$dimensional stochastic differential equations (SDEs) driven by additive L\'evy noise are investigated. Specifically, given $\alpha\in\left(\frac{1}{2},1\right)$, the interest is on SDEs driven by $2\alpha-$stable,…

概率论 · 数学 2022-10-07 Alessandro Bondi

We consider a Stochastic Differential Equation driven by a L\'evy process whose L\'evy measure satisfy a tempered stable domination. We study how a perturbation of the coefficients reflects on the density of the solution. We quantify the…

概率论 · 数学 2016-03-17 L Huang
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