Options is an important part of global financial market，with great influence on national economies. While most classic option pricing models are based on the assumption of a constant interest rate, economic data show that interest rates in reality frequently fluctuated under the influence of varying economic performances and monetary policies. As interest rate fluctuation is closely related to the value and expected return of options, it is worth discussing option pricing under stochastic interest rate models. Since 1990s, scholars home and abroad have been conducting researches on this topic and have formulated price formulas for some types of options. However, because the pricing process involves two stochastic variables, the majority of previous studies employed sophisticated methods. As a result, their price formulas were too complicated to provide straightforward explanations of the parameters’ influence on option prices, unable to offer investors direct assistance. This paper selects Vasicek interest rate model to describe interest rate’s stochastic movement, and discusses the pricing of European equity options whose underlying asset’s price follows Geometric Brownian Motions in a complete market. The paper’s value and innovation lie in the following aspects: ① It improves and simplifies the pricing methods for options under stochastic interest rate models, applies comparatively primary mathematical methods, and attains concise price formulas; ② it 52 conducts in-depth analysis of major parameters’ financial significance, which helps investors to make better investment decisions by estimating the variations in option prices corresponding to different parameters.

Going beyond the linearized study has been a longstanding problem in the theory of Landau damping. In this paper we establish exponential Landau damping in analytic regularity. The damping phenomenon is reinterpreted in terms of transfer of regularity between kinetic and spatial variables, rather than exchanges of energy; phase mixing is the driving mechanism. The analysis involves new families of analytic norms, measuring regularity by comparison with solutions of the free transport equation; new functional inequalities; a control of non-linear echoes; sharp “deflection” estimates; and a Newton approximation scheme. Our results hold for any potential no more singular than Coulomb or Newton interaction; the limit cases are included with specific technical effort. As a side result, the stability of homogeneous equilibria of the non-linear Vlasov equation is established under sharp assumptions. We point out the strong analogy with the KAM theory, and discuss physical implications. Finally, we extend these results to some Gevrey (non-analytic) distribution functions.

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Symmetry protected topological (SPT) states have boundary 't Hooft anomalies that obstruct an effective boundary theory realized in its own dimension with UV completion and with an on-site $G$-symmetry. In this work, yet we show that a certain anomalous non-on-site $G$ symmetry along the boundary becomes on-site when viewed as an extended $H$ symmetry, via a suitable group extension $1\to K\to H\to G\to1$. Namely, a non-perturbative global (gauge/gravitational) anomaly in $G$ becomes anomaly-free in $H$. This guides us to construct exactly soluble lattice path integral and Hamiltonian of symmetric gapped boundaries, \emph{always existent} for \emph{any} SPT state in any spacetime dimension $d \geq 2$ of \emph{any} finite symmetry group, including on-site unitary and anti-unitary time-reversal symmetries. The resulting symmetric gapped boundary can be described either by an $H$-symmetry extended boundary of bulk $d \geq 2$, or more naturally by a topological {emergent} $K$-gauge theory with a global symmetry $G$ on a 3+1D bulk or above. The excitations on such a symmetric topologically ordered boundary can carry fractional quantum numbers of the symmetry $G$, described by representations of $H$. (Apply our approach to a 1+1D boundary of 2+1D bulk, we find that a deconfined gauge boundary indeed has \emph{spontaneous symmetry breaking} with long-range order. The deconfined symmetry-breaking phase crosses over smoothly to a confined phase without a phase transition.) In contrast to known gapped boundaries/interfaces obtained via \emph{symmetry breaking} (either global symmetry breaking or Anderson-Higgs mechanism for gauge theory), our approach is based on \emph{symmetry extension}. More generally, applying our approach to SPT states, topologically ordered gauge theories and symmetry enriched topologically ordered (SET) states, leads to generic boundaries/interfaces constructed with a mixture of \emph{symmetry breaking}, \emph{symmetry extension}, and \emph{dynamical gauging}.

For the d-dimensional incompressible Euler equation, the standard energy method gives local wellposedness for initial velocity in Sobolev space with regularity above some critical threshold. The borderline case was a folklore open problem. In this paper we consider the physical dimension d=2 and show that if we perturb any given smooth initial data in critical norm, then the corresponding solution can have infinite critical norm instantaneously at t>0. In a companion paper we settle the 3D and more general cases. The constructed solutions are unique and even infinitely-smooth (locally) in some cases. To prove these results we introduce a new strategy: large Lagrangian deformation induces critical norm inflation. As an application we also settle several closely related open problems.