AI RESEARCH

STN-GPR: A Singularity Tensor Network Framework for Efficient Option Pricing

arXiv CS.LG

ArXi:2603.26318v1 Announce Type: cross We develop a tensor-network surrogate for option pricing, targeting large-scale portfolio revaluation problems arising in market risk management (e.g., VaR and Expected Shortfall computations). The method involves representing high-dimensional price surfaces in tensor-train (TT) form using TT-cross approximation, constructing the surrogate directly from black-box price evaluations without materializing the full