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The Black-Scholes (B-S) equation has been recently extended as a kind of tempered time-fractional B-S equations, which becomes an interesting mathematical model in option pricing. In this study, we provide a fast numerical method to…

数值分析 · 数学 2023-07-21 Jinfeng Zhou , Xian-Ming Gu , Yong-Liang Zhao , Hu Li

We construct a three-point compact finite difference scheme on a non-uniform mesh for the time-fractional Black-Scholes equation. We show that for special graded meshes used in finance, the Tavella-Randall and the quadratic meshes the…

计算金融 · 定量金融 2016-04-19 Yuri M. Dimitrov , Lubin G. Vulkov

In this paper, we focus on the tempered subdiffusive Black-Scholes model. The main part of our work consists of the finite difference method as a numerical approach to the option pricing in the considered model. We derive the governing…

数值分析 · 数学 2022-05-16 Grzegorz Krzyżanowski , Marcin Magdziarz

The numerical analysis of time fractional evolution equations with the second-order elliptic operator including general time-space dependent variable coefficients is challenging, especially when the classical weak initial singularities are…

数值分析 · 数学 2021-03-02 Pin Lyu , Seakweng Vong

A novel efficient and high accuracy numerical method for the time-fractional differential equations (TFDEs) is proposed in this work. We show the equivalence between TFDEs and the integer-order extended parametric differential equations…

数值分析 · 数学 2025-05-13 Peng Ding , Zhiping Mao

In this paper we focus on the subdiffusive Black Scholes model. The main part of our work consists of the finite difference method as a numerical approach to the option pricing in the considered model. We derive the governing fractional…

计算工程、金融与科学 · 计算机科学 2021-04-19 Grzegorz Krzyżanowski , Marcin Magdziarz , Łukasz Płociniczak

In this paper, we propose a new second-order fast finite difference scheme in time for solving the Tempered Time Fractional Advection-Dispersion Equation. Under the assumption that the solution is nonsmooth at the initial time, we…

数值分析 · 数学 2025-12-22 Liangcai Huang , Shujuan Lü

For the fractional Laplacian of variable order, an efficient and accurate numerical evaluation in multi-dimension is a challenge for the nature of a singular integral. We propose a simple and easy-to-implement finite difference scheme for…

数值分析 · 数学 2024-06-18 Zhaopeng Hao , Siyuan Shi , Zhongqiang Zhang , Rui Du

In this work, a second-order approximation of the fractional substantial derivative is presented by considering a modified shifted substantial Gr\"{u}nwald formula and its asymptotic expansion. Moreover, the proposed approximation is…

数值分析 · 数学 2016-07-26 Zhaopeng Hao , Wanrong Cao , Guang Lin

We focus here on a class of fourth-order parabolic equations that can be written as a system of second-order equations by introducing an auxiliary variable. We design a novel second-order fully discrete mixed finite element method to…

数值分析 · 数学 2020-08-28 Sana Keita , Abdelaziz Beljadid , Yves Bourgault

This paper implements an efficient numerical algorithm for the time-fractional Black-Scholes model governing European options. The proposed method comprises the Crank-Nicolson approach to discretize the time variable and exponential…

计算金融 · 定量金融 2026-02-03 Neetu Garg , A. S. V. Ravi Kanth

In this paper, we develop a second-order accurate time-stepping scheme for the tempered time-fractional advection-dispersion equation based on a sum-of-exponentials (SOE) approximation to the convolution kernel involved in the fractional…

数值分析 · 数学 2026-02-10 Liangcai Huang , Lin Li , Shujuan Lü

This paper proposes a new class of mass or energy conservative numerical schemes for the generalized Benjamin-Ono (BO) equation on the whole real line with arbitrarily high-order accuracy in time. The spatial discretization is achieved by…

数值分析 · 数学 2021-08-31 Kai Yang

In this paper, a nonlinear system of fractional ordinary differential equations with multiple scales in time is investigated. We are interested in the effective long-term computation of the solution. The main challenge is how to obtain the…

数值分析 · 数学 2022-01-07 Zhaoyang Wang , Ping Lin

The time-fractional Black-Scholes equation (TFBSE) is intended to price the options for which the underlying price fluctuates within a correlated fractal transmission system. Although the TFBSE is an influential approach for grasping the…

数值分析 · 数学 2025-08-12 Nizamudheen V , Riyasudheen TK , Noufal Asharaf , Shefeeq T

We study a fully discrete finite element method for variable-order time-fractional diffusion equations with a time-dependent variable order. Optimal convergence estimates are proved with the first-order accuracy in time (and second order…

数值分析 · 数学 2019-05-15 Xiangcheng Zheng , Fanhai Zeng , Hong Wang

We introduce a high-order numerical scheme for fractional ordinary differential equations with the Caputo derivative. The method is developed by dividing the domain into a number of subintervals, and applying the quadratic interpolation on…

数值分析 · 数学 2020-02-25 Junying Cao , Zhenning Cai

Conventional finite-difference schemes for solving partial differential equations are based on approximating derivatives by finite-differences. In this work, an alternative theory is proposed which view finite-difference schemes as…

数值分析 · 数学 2013-09-23 Siu A. Chin

In this paper a time-fractional Black-Scholes model (TFBSM) is considered to study the price change of the underlying fractal transmission system. We develop and analyze a numerical method to solve the TFBSM governing European options. The…

数值分析 · 数学 2022-07-20 Anshima Singh , Sunil Kumar

In this paper, we introduce second order and fourth order space discretization via finite difference implementation of the finite element method for solving Fokker-Planck equations associated with irreversible processes. The proposed…

数值分析 · 数学 2023-10-12 Chen Liu , Yuan Gao , Xiangxiong Zhang
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