Search results for " optimality conditions"

showing 2 items of 2 documents

A Sequential Quadratic Programming Method for Volatility Estimation in Option Pricing

2006

Our goal is to identify the volatility function in Dupire's equation from given option prices. Following an optimal control approach in a Lagrangian framework, we propose a globalized sequential quadratic programming (SQP) algorithm with a modified Hessian - to ensure that every SQP step is a descent direction - and implement a line search strategy. In each level of the SQP method a linear-quadratic optimal control problem with box constraints is solved by a primal-dual active set strategy. This guarantees L^1 constraints for the volatility, in particular assuring its positivity. The proposed algorithm is founded on a thorough first- and second-order optimality analysis. We prove the existe…

Hessian matrixMathematical optimizationLine searchComputer scienceMathematicsofComputing_NUMERICALANALYSISOptimal controlsymbols.namesakeValuation of optionsLagrange multipliersymbolsDescent directionVolatility (finance)Dupire equation parameter identification optimal control optimality conditions SQP method primal-dual active set strategySequential quadratic programming
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Méthodes géometriques en mécanique spatiale et aspects numériques

2005

We present in this thesis two research projectson the optimal control of the space vehicles.In the first, we have dealt with the orbit transferproblem. We study the minimum time control of a satellite that we want to reach a geostationary orbit. Our contribution is of two kinds. Geometric, first, since we study the controllability of the system together with the geometry of the transfer (structure of the command) by means of geometric control without state constraint tools (minimum principle). Then we present shootingalgorithm and homotopy method. These approaches allow the numerical resolution of problems with strong or low thrust satellites.The second project concerns to the calculation o…

[ MATH ] Mathematics [math]algorithme de tir multipleorbital transfer[MATH] Mathematics [math]<br /> optimal control with state constraints<br />méthode de continuationtransfert orbitalnecessary optimality conditionshomotopy method.rentrée atmosphériqueconditions nécessaires d'optimalitéatmospheric re-entry<br /> multiple shooting algorithm[MATH]Mathematics [math]contrôle optimal avec contraintes sur l'état<br />méthode de continuation.méthodes numériques indirectes
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