In this paper we consider the European continuous installment call option. Then  its linear complementarity formulation is given. Writing the resulted problem in variational form, we prove the existence and uniqueness of its weak solution. Finally finite element method is applied to price the European continuous installment call option.

It is well known that variational inequalities are systematically used in the theory of many practical problems related to ”equilibrium”. The equilibrium is an important state considered in Physics, Engineering, Sciences and Economics and even in Biology, [5], [37], [38], [24], [56]. When a variational inequality is defined on a closed convex set, which is in particular a closed convex cone, in...

Generally speaking, there exist two basic ways to describe a physical problem [1]: (1) by differential equations (DE) with boundary or initial conditions; (2) by variational principles (VP). The VP model has many advantages over its DE partner: simple and compact in form while comprehensive in content, encompassing implicitly almost all information characterizing the problem under consideration...

Variational inequalities have found many applications in applied science. A partial list includes obstacles problems, fluid flow in porous media, management science, traffic network, and financial equilibrium problems. However, solving variational inequalities remain a challenging task as they are often subject to some set of complex constraints, for example the obstacle problem. Domain decompo...

Through the use of conditional compilation and related tools, many software projects can be used to generate a huge number of related programs. The problem of typing such variational software is very difficult. The brute-force strategy of generating all variants and typing each one individually is (1) usually infeasible for efficiency reasons and (2) produces results that do not map well to the...

In this paper, we extend the notions of ( , ρ)-invexity and generalized ( , ρ)invexity to the continuous case and we use these concepts to establish sufficient optimality conditions for the considered class of nonconvexmultiobjective variational control problems. Further, multiobjective variational control mixed dual problem is given for the considered multiobjective variational control problem...

This paper investigates the inverse problem of determining a heat source in the parabolic heat equation using the usual conditions. Firstly, the problem is reduced to an equivalent problem which is easy to handle using variational iteration method. Secondly, variational iteration method is used to solve the reduced problem. Using this method a rapid convergent sequence can be produced which ten...

In this seminar paper we give an introduction to the field of deterministic approximate inference. We cast the problem of approximating a posterior distribution over hidden variables as a variational minimization problem. In this framework we describe three algorithms: Variational Factorization, Variational Bounds and Expectation Propagation. We analyze the approximations obtained by the three ...

The purpose of this paper is to introduce the concept of general fuzzy multivalued variational inclusions and to study the existence problem and the iterative approximation problem for certain fuzzy multivalued variational inclusions in Banach spaces. Using the resolvent operator technique and a new analytic technique, some existence theorems and iterative approximation techniques are presented...