Abstract

Purpose – The primary objective of this research is to develop new algorithms in the framework of deep neural networks for the valuation of options under dynamics driven by stochastic volatility models. We aim to use the Heston model for equity options to demonstrate the accuracy of our approach.

Design/methodology/approach – Physics-informed neural networks (PINNs) are trained to minimize a loss function that includes terms from the partial differential equation residuals, initial condition and boundary conditions evaluated at selected points in the space-time domain. Speed and accuracy comparisons are carried out against single hidden-layer neural networks, called physics-informed extreme learning machines (PIELMs). American options are formulated as linear complementarity problems, and PINNs are applied in conjunction with penalty methods for the computation of the option prices.

Findings – For American options under the Heston model, PINNs yield accurate prices. Computed Greeks sensitivities are in close agreement with those reported for mesh-based methods. In contrast to mesh-based penalty methods for American options, PINNs work with smaller values of the penalty term. For the real estate index American option problem, numerical prices obtained using PINNs have comparable accuracies as those obtained by a high-order radial basis functions finite difference scheme.

Practical implications – There is a lack of reliable pricing models for pricing property derivatives. This work contributes to developing accurate neural network algorithms.

DAEJEON, SOUTH KOREA – A joint research team from the Korea Advanced Institute of Science and Technology (KAIST) and the Unmanned Exploration Laboratory (UEL) has developed a transformative wheel capable of navigating the Moon’s most extreme terrains, including steep lunar pits and lava tubes.DAEJEON, SOUTH KOREA – A joint research team from the Korea Advanced Institute of Science and Technology (KAIST) and the Unmanned Exploration Laboratory (UEL) has developed a transformative wheel capable of navigating the Moon’s most extreme terrains, including steep lunar pits and lava tubes.

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Fraunhofer IAF and the Max Planck Institute for Radio Astronomy have provided 145 high-performance low-noise amplifiers for the ALMA radio telescope array in Chile’s Atacama Desert. The amplifiers are based on InGaAs mHEMT MMICs and are essential components of the high-frequency receivers for the wavelength range between 2.6 and 4.5 mm (frequency range: 67–116 GHz, known as Band 2). They will enable ALMA to perform more precise measurements of objects and galaxies in the universe in order to gain new information about the formation of stars, planets and life. The amplifiers delivered complete ALMA, which began scientific operations in 2011 and has been gradually expanded since then.

SAN ANTONIO — December 16, 2025 —Southwest Research Institute’s novel Compact Dual Ion Composition Experiment (CoDICE) instrument aboard NASA’s Interstellar Mapping and Acceleration Probe (IMAP) spacecraft has successfully collected first-light data. IMAP launched in September to help researchers better understand the boundary of the heliosphere, the magnetic bubble that surrounds and protects our solar system.

Helium leaks are hard to detect, since it is odorless, colorless, tasteless, and does not react with other chemical substances. In Applied Physics Letters, by AIP Publishing, researchers from Nanjing University developed a device that utilizes sound waves to detect helium. The researchers built a device inspired by a traditional Japanese bamboo weaving technique called “Kagome-biki.” The triangular device also allows the researchers to determine the location of helium leaks in a 2D space and the researchers hopes to expand the device to locate leakage points in 3D space and develop the system into a portable device.

SAN ANTONIO — December 16, 2025 — After less than a year in orbit, the Southwest Research Institute-built PUNCH spacecraft have made major accomplishments, imaging the Sun in context while tracking comets and enormous space weather events as they traveled through the inner solar system. SwRI’s Dr. Craig DeForest discussed the achievements of NASA’s PUNCH (Polarimeter to Unify the Corona and Heliosphere) mission during a media roundtable at the AGU25 conference on Dec. 16.