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On the Numerical Solution of Some Non-Linear Stochastic Differential Equations Using the Semi-Discrete Method

On the Numerical Solution of Some Non-Linear Stochastic Differential Equations Using the Semi-Discrete Method

Abstract We are interested in the numerical solution of stochastic differential equations with non-negative solutions. Our goal is to construct explicit numerical schemes that preserve positivity, even for super-linear stochastic differential equations. It is well known that the usual Euler scheme diverges on super-linear problems and the tamed Euler method …