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On the Exact Simulation of (Jump) Diffusion Bridges

2015/05/12 by Murray Pollock, Pollock, Murray
Computer Science · #Advanced Mathematical Modeling in Engineering #Computation (stat.CO) #Computational Finance (q-fin.CP) #FOS: Computer and information sciences #FOS: Economics and business #FOS: Mathematics #Methodology (stat.ME) #Probability (math.PR)

paper · pdf · doi:10.48550/arxiv.1505.03030

openalex publication_date 2015/05/12 · openalex created_date 2025/10/10 · openalex updated_date 2026/07/28

Abstract

In this paper we outline methodology to efficiently simulate (jump) diffusion bridge sample paths without discretisation error. We achieve this by considering the simulation of conditioned (jump) diffusion bridge sample paths in light of recent work developing a mathematical framework for simulating finite dimensional sample path skeletons (which flexibly characterise the entirety of sample paths).

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