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L. Bu

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Journal article (2021) - Linlin Bu, Cornelis W. Oosterlee
In this paper, we propose third-order semi-discretized schemes in space based on the tempered weighted and shifted Grunwald difference (tempered-WSGD) operators for the tempered fractional diffusion equation. We also show stability and convergence analysis for the fully discrete scheme based a Crank–Nicolson scheme in time. A third-order scheme for the tempered Black–Scholes equation is also proposed and tested numerically. Some numerical experiments are carried out to confirm accuracy and effectiveness of these proposed methods. ...