Xibei Yang

Qiguo Sun, Hanyue Huang, XiBei Yang et al.

Option pricing models, essential in financial mathematics and risk management, have been extensively studied and recently advanced by AI methodologies. However, American option pricing remains challenging due to the complexity of determining optimal exercise times and modeling non-linear payoffs resulting from stochastic paths. Moreover, the prevalent use of the Black-Scholes formula in hybrid models fails to accurately capture the discontinuity in the price process, limiting model performance, especially under scarce data conditions. To address these issues, this study presents a comprehensive framework for American option pricing consisting of six interrelated modules, which combine nonlinear optimization algorithms, analytical and numerical models, and neural networks to improve pricing performance. Additionally, to handle the scarce data challenge, this framework integrates the transfer learning through numerical data augmentation and a physically constrained, jump diffusion process-informed neural network to capture the leptokurtosis of the log return distribution. To increase training efficiency, a warm-up period using Bayesian optimization is designed to provide optimal data loss and physical loss coefficients. Experimental results of six case studies demonstrate the accuracy, convergence, physical effectiveness, and generalization of the framework. Moreover, the proposed model shows superior performance in pricing deep out-of-the-money options.

Taihua Xu, Genhao Tian, Jicong Fan et al.

Graph Neural Networks (GNNs) have demonstrated impressive performance in learning representations from graph-structured data. However, their message-passing mechanism inherently relies on the assumption of label consistency among connected nodes, limiting their applicability to low-homophily settings. Moreover, since message passing operates as a hierarchical diffusion process, GNNs face challenges in capturing long-range dependencies. As network depth increases, the structural noise along heterophilic edges tends to be amplified, resulting in over-smoothing. This issue becomes especially prominent in highly heterophilic graphs, where the propagation of inconsistent semantics across the topology continually exacerbates misaggregation. To address this issue, we propose a novel framework named Layer Embedding Deep Fusion Graph Neural Network (LEDF-GNN). Specifically, we design a Layer Embedding Deep Fusion (LEDF) operator that nonlinearly fuses multi-layer embeddings to capture inter-layer dependencies and effectively alleviate deep propagation degradation. Meanwhile, to mitigate structural heterophily, LEDF-GNN employs a Dual-Topology Parallel Strategy (DTPS) that simultaneously leverages the original and reconstructed topologies, allowing for adaptive structure-semantics co-optimization under diverse homophily conditions. Extensive semi-supervised classification experiments on the citation and image benchmarks demonstrate that, under both homophilic and heterophilic settings, LEDF-GNN consistently outperforms state-of-the-art baselines, validating its effectiveness and generalization capability across diverse graph types.

Suping Xu, Lin Shang, Keyu Liu et al.

Fuzzy rough feature selection (FRFS) is an effective means of addressing the curse of dimensionality in high-dimensional data. By removing redundant and irrelevant features, FRFS helps mitigate classifier overfitting, enhance generalization performance, and lessen computational overhead. However, most existing FRFS algorithms primarily focus on reducing uncertainty in pattern classification, neglecting that lower uncertainty does not necessarily result in improved classification performance, despite it commonly being regarded as a key indicator of feature selection effectiveness in the FRFS literature. To bridge uncertainty characterization and pattern classification, we propose a Margin-aware Fuzzy Rough Feature Selection (MAFRFS) framework that considers both the compactness and separation of label classes. MAFRFS effectively reduces uncertainty in pattern classification tasks, while guiding the feature selection towards more separable and discriminative label class structures. Extensive experiments on 15 public datasets demonstrate that MAFRFS is highly scalable and more effective than FRFS. The algorithms developed using MAFRFS outperform six state-of-the-art feature selection algorithms.

Suping Xu, Chuyi Dai, Ye Liu et al.

Feature selection is crucial for fuzzy decision systems (FDSs), as it identifies informative features and eliminates rule redundancy, thereby enhancing predictive performance and interpretability. Most existing methods either fail to directly align evaluation criteria with learning performance or rely solely on non-directional Euclidean distances to capture relationships among decision classes, which limits their ability to clarify decision boundaries. However, the spatial distribution of instances has a potential impact on the clarity of such boundaries. Motivated by this, we propose Spatially-aware Separability-driven Feature Selection (S$^2$FS), a novel framework for FDSs guided by a spatially-aware separability criterion. This criterion jointly considers within-class compactness and between-class separation by integrating scalar-distances with spatial directional information, providing a more comprehensive characterization of class structures. S$^2$FS employs a forward greedy strategy to iteratively select the most discriminative features. Extensive experiments on ten real-world datasets demonstrate that S$^2$FS consistently outperforms eight state-of-the-art feature selection algorithms in both classification accuracy and clustering performance, while feature visualizations further confirm the interpretability of the selected features.

Suping Xu, Chuyi Dai, Lin Shang et al.

Label distribution learning (LDL) is an emerging learning paradigm designed to capture the relative importance of labels for each instance. Label-specific features (LSFs), constructed by LIFT, have proven effective for learning tasks with label ambiguity by leveraging clustering-based prototypes for each label to re-characterize instances. However, directly introducing LIFT into LDL tasks can be suboptimal, as the prototypes it collects primarily reflect intra-cluster relationships while neglecting interactions among distinct clusters. Additionally, constructing LSFs using multi-perspective information, rather than relying solely on Euclidean distance, provides a more robust and comprehensive representation of instances, mitigating noise and bias that may arise from a single distance perspective. To address these limitations, we introduce Structural Anchor Points (SAPs) to capture inter-cluster interactions. This leads to a novel LSFs construction strategy, LIFT-SAP, which enhances LIFT by integrating both distance and direction information of each instance relative to SAPs. Furthermore, we propose a novel LDL algorithm, Label Distribution Learning via Label-specifIc FeaTure with SAPs (LDL-LIFT-SAP), which unifies multiple label description degrees predicted from different LSF spaces into a cohesive label distribution. Extensive experiments on 15 real-world datasets demonstrate the effectiveness of LIFT-SAP over LIFT, as well as the superiority of LDL-LIFT-SAP compared to seven other well-established algorithms.