Multivariate Integral Perturbation Techniques - I (Theory)

Fuente: arXiv
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Autore principale: Dash, Jan W.
Natura: Preprint
Pubblicazione: 2006
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author Dash, Jan W.
author_facet Dash, Jan W.
contents We present a quasi-analytic perturbation expansion for multivariate N-dimensional Gaussian integrals. The perturbation expansion is an infinite series of lower-dimensional integrals (one-dimensional in the simplest approximation). This perturbative idea can also be applied to multivariate Student-t integrals. We evaluate the perturbation expansion explicitly through 2nd order, and discuss the convergence, including enhancement using Pade approximants. Brief comments on potential applications in finance are given, including options, models for credit risk and derivatives, and correlation sensitivities.
format Preprint
id arxiv_https___arxiv_org_abs_cs_0611061
institution arXiv
publishDate 2006
record_format arxiv
spellingShingle Multivariate Integral Perturbation Techniques - I (Theory)
Dash, Jan W.
Computational Engineering, Finance, and Science
Numerical Analysis
B.2.4; G.1.4; G.3; J.1; J.2; J.4
We present a quasi-analytic perturbation expansion for multivariate N-dimensional Gaussian integrals. The perturbation expansion is an infinite series of lower-dimensional integrals (one-dimensional in the simplest approximation). This perturbative idea can also be applied to multivariate Student-t integrals. We evaluate the perturbation expansion explicitly through 2nd order, and discuss the convergence, including enhancement using Pade approximants. Brief comments on potential applications in finance are given, including options, models for credit risk and derivatives, and correlation sensitivities.
title Multivariate Integral Perturbation Techniques - I (Theory)
topic Computational Engineering, Finance, and Science
Numerical Analysis
B.2.4; G.1.4; G.3; J.1; J.2; J.4
url https://arxiv.org/abs/cs/0611061