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Record W4390270904 · doi:10.21203/rs.3.rs-3789748/v1

A fast and enhanced shallow learning framework for solving free boundary options pricing problems

2023· preprint· en· W4390270904 on OpenAlexafffund
Chinonso Nwankwo, Tony Ware, Weizhong Dai

Bibliographic record

VenueResearch Square · 2023
Typepreprint
Languageen
FieldEngineering
TopicEnergy Load and Power Forecasting
Canadian institutionsUniversity of Calgary
FundersNatural Sciences and Engineering Research Council of CanadaCanadian Network for Research and Innovation in Machining Technology, Natural Sciences and Engineering Research Council of Canada
KeywordsBoundary (topology)ConvexityComputer scienceVolatility (finance)Mathematical optimizationGeneralizationValuation of optionsLocal volatilityArtificial neural networkImplied volatilityApplied mathematicsEconometricsMathematicsEconomicsMachine learningFinancial economicsMathematical analysis

Abstract

fetched live from OpenAlex

Abstract We consider various non-standard and non-linear free boundary options pricing problems comprising the non-linear free boundary local volatility model, exotic options, and dividend-paying pricing model and present a fast and enhanced shallow learning framework for solving free boundary options pricing problems with auxiliary neural operators (ANOs). To this end, we first rigorously explore the efficacy of some featured activation functions (FAFs) for solving these models with ANOs. We observe that some existing and ad-hoc activation functions perform well, but are not suitable for generalization. Rather, they should be enhanced to be adaptable to specific model characteristics and conditions based on their positivity, boundedness, convexity, vanishing points, discontinuous points, exploding points, etc. By adapting some of the existing activation functions and accustoming new ones, we then obtain a fast and enhanced shallow learning method which substantially improve the performance of neural network methodologies for non-standard options pricing models.

Fetched live from OpenAlex and de-inverted. Abstracts are not stored in this database: the inverted indexes are 8.6 GB of the frame’s 9.3 GB of text, and the host has 13 GB free.

How this classification was reachedexpand

Full frame machine prediction

Teacher imitation

Not calibrated prevalence, not ground truth. Human validation pending. The Gemma side is a direct model label for every work in the frame, read from the title-only record. The Codex side is a classifier learned from the 10,348 direct Codex labels and calibrated to design-weighted sample rates; fields without enough sample support carry no Codex call. Candidate is the union of the two sides; consensus is their intersection. These outputs are machine_predicted_unvalidated and are not human labels.

metaresearch head score (Codex)0.001
metaresearch head score (Gemma)0.002
Version: metacan-v3-hybrid-931329e0061cValidation status: machine_predicted_unvalidated
Candidate categoriesnone
Consensus categoriesnone
DomainCandidate signal: none · Consensus signal: none
Study designCandidate signal: Simulation or modeling · Consensus signal: Simulation or modeling
GenreCandidate signal: Methods · Consensus signal: Methods
Teacher disagreement score0.005
Threshold uncertainty score0.010

Distilled classifier scores by category (both heads)

CategoryCodexGemma
Metaresearch0.0010.002
Meta-epidemiology (narrow)0.0010.000
Meta-epidemiology (broad)0.0010.001
Bibliometrics0.0000.000
Science and technology studies0.0000.001
Scholarly communication0.0010.002
Open science0.0020.002
Research integrity0.0010.002
Insufficient payload (model declined to judge)0.0030.001

Machine scores (provisional)

The two teacher heads of the student model, read on this work. A score orders the frame for review; it never asserts a category, and the validation status ships verbatim with every row.

Baseline scores from an immature model (maturity gate not passed, 7 training rounds). Scores rank; they never assert a category.

Opus teacher head0.063
GPT teacher head0.343
Teacher spread0.280 · how far apart the two teachers sit on this one work
Validation statusscore_only:v0-immature-baseline · verbatim from the scoring run: score_only means the number may rank works, and no category label ships from it

Classification

machine, unvalidated

Machine predicted; a candidate call from one source (direct Gemma or distilled Codex), not a consensus.

The models applied no category: nothing in the taxonomy fit this work.
Study designSimulation or modeling
Domainnot available
GenreMethods

How this classification was reached, model by model and score by score, is at the end of the page under "How this classification was reached".

Quick stats

Citations1
Published2023
Admission routes2
Has abstractyes

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