Adaptive frame methods with cubic spline-wavelet bases
Černá, Dana, Finěk, Václav
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Černá, Dana, Finěk, Václav
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Černá, Dana
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This paper addresses the two-asset Merton model for option pricing represented by non-stationary integro-differential equations with two state variables. The drawback of most classical methods for solving these types of equations is that the matrices arising from discretization are full and ill-conditioned. In this paper, we first transform the equation using logarithmic prices, drift removal, and localization. Then, we apply the Galerkin method with a recently proposed orthogonal cubic...
Černá, Dana, Finěk, Václav, Šimůnková, Martina
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To use wavelets efficiently to solve numerically partial differential equations in higher dimensions, it is necessary to have at one’s disposal suitable wavelet bases. Ideal wavelets should have short supports and vanishing moments, be smooth and known in closed form, and a corresponding wavelet basis should be well-conditioned. In our contribution, we compare condition numbers of different quadratic spline wavelet bases in dimensions d = 1, 2 and 3 on tensor product domains (0,1)^d. ...
Lakestani, M., Razzaghi, M., Dehghan, M. (2005)
Mathematical Problems in Engineering
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Cattani, Carlo, Sánchez Ruiz, Luis M. (2004)
International Journal of Mathematics and Mathematical Sciences
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Jérémie Bigot (2005)
ESAIM: Probability and Statistics
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This paper is concerned with the problem of determining the typical features of a curve when it is observed with noise. It has been shown that one can characterize the Lipschitz singularities of a signal by following the propagation across scales of the modulus maxima of its continuous wavelet transform. A nonparametric approach, based on appropriate thresholding of the empirical wavelet coefficients, is proposed to estimate the wavelet maxima of a signal observed with noise at various...
Lang, W.Christopher (1998)
International Journal of Mathematics and Mathematical Sciences
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Jérémie Bigot (2010)
ESAIM: Probability and Statistics
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This paper is concerned with the problem of determining the typical features of a curve when it is observed with noise. It has been shown that one can characterize the Lipschitz singularities of a signal by following the propagation across scales of the modulus maxima of its continuous wavelet transform. A nonparametric approach, based on appropriate thresholding of the empirical wavelet coefficients, is proposed to estimate the wavelet maxima of a signal observed with noise at various...