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The latter author, together with collaborators, proposed a numerical scheme to calculate the price of barrier options. The scheme is based on a symmetrization of diffusion process. The present paper aims to give a mathematical credit to the…

计算金融 · 定量金融 2012-06-27 Jiro Akahori , Yuri Imamura

Conditional independence and graphical models are crucial concepts for sparsity and statistical modeling in higher dimensions. For L\'evy processes, a widely applied class of stochastic processes, these notions have not been studied. By the…

统计理论 · 数学 2024-11-13 Sebastian Engelke , Jevgenijs Ivanovs , Jakob D. Thøstesen

In this paper we consider (upward skip-free) discrete-time and discrete-space Markov additive chains (MACs) and develop the theory for the so-called $\tilde{W}$ and $\tilde{Z}$ scale matrices. which are shown to play a vital role in the…

概率论 · 数学 2024-04-24 Zbigniew Palmowski , Lewis Ramsden , Apostolos Papaioannou

In this paper we consider dividend problem for an insurance company whose risk evolves as a spectrally negative L\'{e}vy process (in the absence of dividend payments) when Parisian delay is applied. The objective function is given by the…

投资组合管理 · 定量金融 2011-10-19 Irmina Czarna , Zbigniew Palmowski

We consider the problem of constructing an adaptive bridge regression modeling, which is a penalized procedure by imposing different weights to different coefficients in the bridge penalty term. A crucial issue in the modeling process is…

统计方法学 · 统计学 2013-02-15 Shuichi Kawano

In this paper, we introduce the concept of \emph{Poissonian occupation times} below level $0$ of spectrally negative L\'evy processes. In this case, occupation time is accumulated only when the process is observed to be negative at arrival…

概率论 · 数学 2019-07-24 Mohamed Amine Lkabous

Continuous time random walks combining diffusive and ballistic regimes are introduced to describe a class of L\'evy walks on lattices. By including exponentially-distributed waiting times separating the successive jump events of a walker,…

统计力学 · 物理学 2014-12-02 Giampaolo Cristadoro , Thomas Gilbert , Marco Lenci , David P. Sanders

The notion of degree and related notions concerning recurrence and transience for a class of L'evy processes on metric Abelian groups are studied. The case of random walks on a hierarchical group is examined with emphasis on the role of the…

概率论 · 数学 2007-05-23 D. A. Dawson , L. G. Gorostiza , A. Wakolbinger

We consider a class of L\'evy-driven stochastic differential equations (SDEs) with McKean-Vlasov (MK-V) interaction in the drift coefficient. It is assumed that the coefficient is bounded, affine in the state variable, and only measurable…

概率论 · 数学 2018-12-13 Ankush Agarwal , Stefano Pagliarani

We consider a L\'evy process reflected at the origin with additional i.i.d. collapses that occur at Poisson epochs, where a collapse is a jump downward to a state which is a random fraction of the state just before the jump. We first study…

概率论 · 数学 2025-01-17 Onno Boxma , Offer Kella , David Perry

Applying excursion theory, we re-express several well studied fluctuation quantities associated to Parisian ruin problem for L\'evy risk processes in terms of integrals with respect to excursion measure for spectrally negative L\'evy…

概率论 · 数学 2023-05-16 Bo Li , Xiaowen Zhou

This paper examines a semi-analytical approach for pricing American options in time-inhomogeneous models characterized by negative interest rates (for equity/FX) or negative convenience yields (for commodities/cryptocurrencies). Under such…

证券定价 · 定量金融 2025-07-22 Andrey Itkin , Yerkin Kitapbayev

In this paper, we analyze some distributions involving the longest and shortest negative excursions of spectrally negative L\'evy processes using the binomial expansion approach. More specifically, we study the distributions of such…

概率论 · 数学 2024-11-12 M. A. Lkabous , Z. Palmowski

We study the penalization problem with various clocks where the weight is given as the exponential functional of multi-point local times for one-dimensional L\'{e}vy processes. The limit processes may vary according to the choice of random…

概率论 · 数学 2025-07-02 Kohki Iba

Stochastic optimal control problems have a long tradition in applied probability, with the questions addressed being of high relevance in a multitude of fields. Even though theoretical solutions are well understood in many scenarios, their…

统计理论 · 数学 2024-05-28 Sören Christensen , Claudia Strauch , Lukas Trottner

In this paper we analyze a L\'evy process reflected at a general (possibly random) barrier. For this process we prove Central Limit Theorem for the first passage time. We also give the finite-time first passage probability asymptotics.

概率论 · 数学 2017-05-08 Zbigniew Palmowski , Przemysław Świątek

In this article, we consider multilevel Monte Carlo for the numerical computation of expectations for stochastic differential equations driven by L\'{e}vy processes. The underlying numerical schemes are based on jump-adapted Euler schemes.…

概率论 · 数学 2016-02-02 Steffen Dereich , Sangmeng Li

This paper deals with an isoperimetric optimal control problem for nonlinear control-affine systems with periodic boundary conditions. As it was shown previously, the candidates for optimal controls for this problem can be obtained within…

最优化与控制 · 数学 2019-02-08 P. Benner , A. Seidel-Morgenstern , A. Zuyev

In this paper, we model dependence between operational risks by allowing risk profiles to evolve stochastically in time and to be dependent. This allows for a flexible correlation structure where the dependence between frequencies of…

风险管理 · 定量金融 2009-07-31 Gareth W. Peters , Pavel V. Shevchenko , Mario V. Wüthrich

In the spirit of [Surya07'], we develop an average problem approach to prove the optimality of threshold type strategies for optimal stopping of L\'evy models with a continuous additive functional (CAF) discounting. Under spectrally…

数理金融 · 定量金融 2018-08-21 Mingsi Long , Hongzhong Zhang
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