Parabolic partial differential equations (PDEs) are fundamental in modelling a wide range of diffusion processes in physics, finance and engineering. The numerical approximation of these equations ...
A numerical error is either of two kinds of error in a calculation. The first (a rounding error) is caused by the finite precision of computations involving floating ...
We provide a bound for the error committed when using a Fourier method to price European options, when the underlying follows an exponential Lévy dynamic. The price ...