Multinode Shepard collocation method for pricing of financial derivatives

Fuente: arXiv
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Bibliographic Details
Main Authors: Dell'Accio, Francesco, Di Tommaso, Filomena, Francomano, Elisa, Lorenzi, Clara
Format: Preprint
Published: 2025
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author Dell'Accio, Francesco
Di Tommaso, Filomena
Francomano, Elisa
Lorenzi, Clara
author_facet Dell'Accio, Francesco
Di Tommaso, Filomena
Francomano, Elisa
Lorenzi, Clara
contents This paper explores the use of the multinode Shepard method for the numerical solution of the two-dimensional Black-Scholes equation. The proposed approach integrates a spatial approximation via the multinode Shepard operator with a temporal discretization based on the Backward Difference Formula. Numerical experiments are presented to demonstrate the accuracy and effectiveness of the method.
format Preprint
id arxiv_https___arxiv_org_abs_2508_08023
institution arXiv
publishDate 2025
record_format arxiv
spellingShingle Multinode Shepard collocation method for pricing of financial derivatives
Dell'Accio, Francesco
Di Tommaso, Filomena
Francomano, Elisa
Lorenzi, Clara
Numerical Analysis
This paper explores the use of the multinode Shepard method for the numerical solution of the two-dimensional Black-Scholes equation. The proposed approach integrates a spatial approximation via the multinode Shepard operator with a temporal discretization based on the Backward Difference Formula. Numerical experiments are presented to demonstrate the accuracy and effectiveness of the method.
title Multinode Shepard collocation method for pricing of financial derivatives
topic Numerical Analysis
url https://arxiv.org/abs/2508.08023