Robust Numerical Scheme for Pricing American Options under Jump Diffusion Models

The goal of option pricing theory is to help the investors to manage their money, enhance returns and control their financial future by theoretically valuing their options. However, most of the option pricing models have no analytical solution. Furthermore, not all the numerical methods are efficient to solve these models because they have nonsmoothing payoffs or discontinuous derivatives at the exercise price. In this paper, we solve the American option under jump diffusion models by using efficient time-dependent numerical methods. several techniques are integrated to reduced the overcome the computational complexity. Fast Fourier Transform (FFT) algorithm is used as a matrix-vector multiplication solver, which reduces the complexity from O(M2) into O(M logM). Partial fraction decomposition technique is applied to rational approximation schemes to overcome the complexity of inverting polynomial of matrices. The proposed method is easy to implement on serial or parallel versions. Numerical results are presented to prove the accuracy and efficiency of the proposed method.

Improving the Security of Internet of Things Using Encryption Algorithms

Internet of things (IOT) is a kind of advanced information technology which has drawn societies’ attention. Sensors and stimulators are usually recognized as smart devices of our environment. Simultaneously, IOT security brings up new issues. Internet connection and possibility of interaction with smart devices cause those devices to involve more in human life. Therefore, safety is a fundamental requirement in designing IOT. IOT has three remarkable features: overall perception, reliable transmission, and intelligent processing. Because of IOT span, security of conveying data is an essential factor for system security. Hybrid encryption technique is a new model that can be used in IOT. This type of encryption generates strong security and low computation. In this paper, we have proposed a hybrid encryption algorithm which has been conducted in order to reduce safety risks and enhancing encryption's speed and less computational complexity. The purpose of this hybrid algorithm is information integrity, confidentiality, non-repudiation in data exchange for IOT. Eventually, the suggested encryption algorithm has been simulated by MATLAB software, and its speed and safety efficiency were evaluated in comparison with conventional encryption algorithm.

A Comparative Study of High Order Rotated Group Iterative Schemes on Helmholtz Equation

In this paper, we present a high order group explicit method in solving the two dimensional Helmholtz equation. The presented method is derived from a nine-point fourth order finite difference approximation formula obtained from a 45-degree rotation of the standard grid which makes it possible for the construction of iterative procedure with reduced complexity. The developed method will be compared with the existing group iterative schemes available in literature in terms of computational time, iteration counts, and computational complexity. The comparative performances of the methods will be discussed and reported.

Convex Restrictions for Outage Constrained MU-MISO Downlink under Imperfect Channel State Information

In this paper, we consider the MU-MISO downlink scenario, under imperfect channel state information (CSI). The main issue in imperfect CSI is to keep the probability of each user achievable outage rate below the given threshold level. Such a rate outage constraints present significant and analytical challenges. There are many probabilistic methods are used to minimize the transmit optimization problem under imperfect CSI. Here, decomposition based large deviation inequality and Bernstein type inequality convex restriction methods are used to perform the optimization problem under imperfect CSI. These methods are used for achieving improved output quality and lower complexity. They provide a safe tractable approximation of the original rate outage constraints. Based on these method implementations, performance has been evaluated in the terms of feasible rate and average transmission power. The simulation results are shown that all the two methods offer significantly improved outage quality and lower computational complexity.

Low Complexity Peak-to-Average Power Ratio Reduction in Orthogonal Frequency Division Multiplexing System by Simultaneously Applying Partial Transmit Sequence and Clipping Algorithms

Orthogonal Frequency Division Multiplexing (OFDM) has been used in many advanced wireless communication systems due to its high spectral efficiency and robustness to frequency selective fading channels. However, the major concern with OFDM system is the high peak-to-average power ratio (PAPR) of the transmitted signal. Some of the popular techniques used for PAPR reduction in OFDM system are conventional partial transmit sequences (CPTS) and clipping. In this paper, a parallel combination/hybrid scheme of PAPR reduction using clipping and CPTS algorithms is proposed. The proposed method intelligently applies both the algorithms in order to reduce both PAPR as well as computational complexity. The proposed scheme slightly degrades bit error rate (BER) performance due to clipping operation and it can be reduced by selecting an appropriate value of the clipping ratio (CR). The simulation results show that the proposed algorithm achieves significant PAPR reduction with much reduced computational complexity.

PAPR Reduction of FBMC Using Sliding Window Tone Reservation Active Constellation Extension Technique

The high Peak to Average Power Ratio (PAR) in Filter Bank Multicarrier with Offset Quadrature Amplitude Modulation (FBMC-OQAM) can significantly reduce power efficiency and performance. In this paper, we address the problem of PAPR reduction for FBMC-OQAM systems using Tone Reservation (TR) technique. Due to the overlapping structure of FBMCOQAM signals, directly applying TR schemes of OFDM systems to FBMC-OQAM systems is not effective. We improve the tone reservation (TR) technique by employing sliding window with Active Constellation Extension for the PAPR reduction of FBMC-OQAM signals, called sliding window tone reservation Active Constellation Extension (SW-TRACE) technique. The proposed SW-TRACE technique uses the peak reduction tones (PRTs) of several consecutive data blocks to cancel the peaks of the FBMC-OQAM signal inside a window, with dynamically extending outer constellation points in active(data-carrying) channels, within margin-preserving constraints, in order to minimize the peak magnitude. Analysis and simulation results compared to the existing Tone Reservation (TR) technique for FBMC/OQAM system. The proposed method SW-TRACE has better PAPR performance and lower computational complexity.

Feature Level Fusion of Multimodal Images Using Haar Lifting Wavelet Transform

This paper presents feature level image fusion using Haar lifting wavelet transform. Feature fused is edge and boundary information, which is obtained using wavelet transform modulus maxima criteria. Simulation results show the superiority of the result as entropy, gradient, standard deviation are increased for fused image as compared to input images. The proposed methods have the advantages of simplicity of implementation, fast algorithm, perfect reconstruction, and reduced computational complexity. (Computational cost of Haar wavelet is very small as compared to other lifting wavelets.)

Enhanced Face Recognition with Daisy Descriptors Using 1BT Based Registration

In this paper, it is proposed to improve Daisy Descriptor based face recognition using a novel One-Bit Transform (1BT) based pre-registration approach. The 1BT based pre-registration procedure is fast and has low computational complexity. It is shown that the face recognition accuracy is improved with the proposed approach. The proposed approach can facilitate highly accurate face recognition using DAISY descriptor with simple matching and thereby facilitate a low-complexity approach.

A Local Invariant Generalized Hough Transform Method for Integrated Circuit Visual Positioning

In this study, an local invariant generalized Houghtransform (LI-GHT) method is proposed for integrated circuit (IC) visual positioning. The original generalized Hough transform (GHT) is robust to external noise; however, it is not suitable for visual positioning of IC chips due to the four-dimensionality (4D) of parameter space which leads to the substantial storage requirement and high computational complexity. The proposed LI-GHT method can reduce the dimensionality of parameter space to 2D thanks to the rotational invariance of local invariant geometric feature and it can estimate the accuracy position and rotation angle of IC chips in real-time under noise and blur influence. The experiment results show that the proposed LI-GHT can estimate position and rotation angle of IC chips with high accuracy and fast speed. The proposed LI-GHT algorithm was implemented in IC visual positioning system of radio frequency identification (RFID) packaging equipment.

Blind Channel Estimation Based on URV Decomposition Technique for Uplink of MC-CDMA

In this paper, we investigate a blind channel estimation method for Multi-carrier CDMA systems that use a subspace decomposition technique. This technique exploits the orthogonality property between the noise subspace and the received user codes to obtain channel of each user. In the past we used Singular Value Decomposition (SVD) technique but SVD have most computational complexity so in this paper use a new algorithm called URV Decomposition, which serve as an intermediary between the QR decomposition and SVD, replaced in SVD technique to track the noise space of the received data. Because of the URV decomposition has almost the same estimation performance as the SVD, but has less computational complexity.

An Efficient Algorithm for Delay Delay-variation Bounded Least Cost Multicast Routing

Many multimedia communication applications require a source to transmit messages to multiple destinations subject to quality of service (QoS) delay constraint. To support delay constrained multicast communications, computer networks need to guarantee an upper bound end-to-end delay from the source node to each of the destination nodes. This is known as multicast delay problem. On the other hand, if the same message fails to arrive at each destination node at the same time, there may arise inconsistency and unfairness problem among users. This is related to multicast delayvariation problem. The problem to find a minimum cost multicast tree with delay and delay-variation constraints has been proven to be NP-Complete. In this paper, we propose an efficient heuristic algorithm, namely, Economic Delay and Delay-Variation Bounded Multicast (EDVBM) algorithm, based on a novel heuristic function, to construct an economic delay and delay-variation bounded multicast tree. A noteworthy feature of this algorithm is that it has very high probability of finding the optimal solution in polynomial time with low computational complexity.

An Improved Transfer Logic of the Two-Path Algorithm for Acoustic Echo Cancellation

Adaptive echo cancellers with two-path algorithm are applied to avoid the false adaptation during the double-talk situation. In the two-path algorithm, several transfer logic solutions have been proposed to control the filter update. This paper presents an improved transfer logic solution. It improves the convergence speed of the two-path algorithm, and allows the reduction of the memory elements and computational complexity. Results of simulations show the improved performance of the proposed solution.

Efficient and Effective Gabor Feature Representation for Face Detection

We here propose improved version of elastic graph matching (EGM) as a face detector, called the multi-scale EGM (MS-EGM). In this improvement, Gabor wavelet-based pyramid reduces computational complexity for the feature representation often used in the conventional EGM, but preserving a critical amount of information about an image. The MS-EGM gives us higher detection performance than Viola-Jones object detection algorithm of the AdaBoost Haar-like feature cascade. We also show rapid detection speeds of the MS-EGM, comparable to the Viola-Jones method. We find fruitful benefits in the MS-EGM, in terms of topological feature representation for a face.

A Universal Model for Content-Based Image Retrieval

In this paper a novel approach for generalized image retrieval based on semantic contents is presented. A combination of three feature extraction methods namely color, texture, and edge histogram descriptor. There is a provision to add new features in future for better retrieval efficiency. Any combination of these methods, which is more appropriate for the application, can be used for retrieval. This is provided through User Interface (UI) in the form of relevance feedback. The image properties analyzed in this work are by using computer vision and image processing algorithms. For color the histogram of images are computed, for texture cooccurrence matrix based entropy, energy, etc, are calculated and for edge density it is Edge Histogram Descriptor (EHD) that is found. For retrieval of images, a novel idea is developed based on greedy strategy to reduce the computational complexity. The entire system was developed using AForge.Imaging (an open source product), MATLAB .NET Builder, C#, and Oracle 10g. The system was tested with Coral Image database containing 1000 natural images and achieved better results.

A Signal Driven Adaptive Resolution Short-Time Fourier Transform

The frequency contents of the non-stationary signals vary with time. For proper characterization of such signals, a smart time-frequency representation is necessary. Classically, the STFT (short-time Fourier transform) is employed for this purpose. Its limitation is the fixed timefrequency resolution. To overcome this drawback an enhanced STFT version is devised. It is based on the signal driven sampling scheme, which is named as the cross-level sampling. It can adapt the sampling frequency and the window function (length plus shape) by following the input signal local variations. This adaptation results into the proposed technique appealing features, which are the adaptive time-frequency resolution and the computational efficiency.

Signal Driven Sampling and Filtering a Promising Approach for Time Varying Signals Processing

The mobile systems are powered by batteries. Reducing the system power consumption is a key to increase its autonomy. It is known that mostly the systems are dealing with time varying signals. Thus, we aim to achieve power efficiency by smartly adapting the system processing activity in accordance with the input signal local characteristics. It is done by completely rethinking the processing chain, by adopting signal driven sampling and processing. In this context, a signal driven filtering technique, based on the level crossing sampling is devised. It adapts the sampling frequency and the filter order by analysing the input signal local variations. Thus, it correlates the processing activity with the signal variations. It leads towards a drastic computational gain of the proposed technique compared to the classical one.

Fast Codevector Search Algorithm for 3-D Vector Quantized Codebook

This paper presents a very simple and efficient algorithm for codebook search, which reduces a great deal of computation as compared to the full codebook search. The algorithm is based on sorting and centroid technique for search. The results table shows the effectiveness of the proposed algorithm in terms of computational complexity. In this paper we also introduce a new performance parameter named as Average fractional change in pixel value as we feel that it gives better understanding of the closeness of the image since it is related to the perception. This new performance parameter takes into consideration the average fractional change in each pixel value.

A Hybrid Multi Objective Algorithm for Flexible Job Shop Scheduling

Scheduling for the flexible job shop is very important in both fields of production management and combinatorial optimization. However, it quit difficult to achieve an optimal solution to this problem with traditional optimization approaches owing to the high computational complexity. The combining of several optimization criteria induces additional complexity and new problems. In this paper, a Pareto approach to solve the multi objective flexible job shop scheduling problems is proposed. The objectives considered are to minimize the overall completion time (makespan) and total weighted tardiness (TWT). An effective simulated annealing algorithm based on the proposed approach is presented to solve multi objective flexible job shop scheduling problem. An external memory of non-dominated solutions is considered to save and update the non-dominated solutions during the solution process. Numerical examples are used to evaluate and study the performance of the proposed algorithm. The proposed algorithm can be applied easily in real factory conditions and for large size problems. It should thus be useful to both practitioners and researchers.

Computational Aspects of Regression Analysis of Interval Data

We consider linear regression models where both input data (the values of independent variables) and output data (the observations of the dependent variable) are interval-censored. We introduce a possibilistic generalization of the least squares estimator, so called OLS-set for the interval model. This set captures the impact of the loss of information on the OLS estimator caused by interval censoring and provides a tool for quantification of this effect. We study complexity-theoretic properties of the OLS-set. We also deal with restricted versions of the general interval linear regression model, in particular the crisp input – interval output model. We give an argument that natural descriptions of the OLS-set in the crisp input – interval output cannot be computed in polynomial time. Then we derive easily computable approximations for the OLS-set which can be used instead of the exact description. We illustrate the approach by an example.

Recognition of Isolated Speech Signals using Simplified Statistical Parameters

We present a novel scheme to recognize isolated speech signals using certain statistical parameters derived from those signals. The determination of the statistical estimates is based on extracted signal information rather than the original signal information in order to reduce the computational complexity. Subtle details of these estimates, after extracting the speech signal from ambience noise, are first exploited to segregate the polysyllabic words from the monosyllabic ones. Precise recognition of each distinct word is then carried out by analyzing the histogram, obtained from these information.