Daily Papers

The implied volatility smile surface is the basis of option pricing, and the dynamic evolution of the option volatility smile surface is difficult to predict. In this paper, attention mechanism is introduced into LSTM, and a volatility surface prediction method combining deep learning and attention mechanism is pioneeringly established. LSTM's forgetting gate makes it have strong generalization ability, and its feedback structure enables it to characterize the long memory of financial volatility. The application of attention mechanism in LSTM networks can significantly enhance the ability of LSTM networks to select input features. The experimental results show that the two strategies constructed using the predicted implied volatility surfaces have higher returns and Sharpe ratios than that the volatility surfaces are not predicted. This paper confirms that the use of AI to predict the implied volatility surface has theoretical and economic value. The research method provides a new reference for option pricing and strategy.

Image enhancement improves visual quality and helps reveal details that are hard to see in the original image. In medical imaging, it can support clinical decision-making, but current models often over-edit. This can distort organs, create false findings, and miss small tumors because these models do not understand anatomy or contrast dynamics. We propose SMILE, an anatomy-aware diffusion model that learns how organs are shaped and how they take up contrast. It enhances only clinically relevant regions while leaving all other areas unchanged. SMILE introduces three key ideas: (1) structure-aware supervision that follows true organ boundaries and contrast patterns; (2) registration-free learning that works directly with unaligned multi-phase CT scans; (3) unified inference that provides fast and consistent enhancement across all contrast phases. Across six external datasets, SMILE outperforms existing methods in image quality (14.2% higher SSIM, 20.6% higher PSNR, 50% better FID) and in clinical usefulness by producing anatomically accurate and diagnostically meaningful images. SMILE also improves cancer detection from non-contrast CT, raising the F1 score by up to 10 percent.

We present a framework for generating full-bodied photorealistic avatars that gesture according to the conversational dynamics of a dyadic interaction. Given speech audio, we output multiple possibilities of gestural motion for an individual, including face, body, and hands. The key behind our method is in combining the benefits of sample diversity from vector quantization with the high-frequency details obtained through diffusion to generate more dynamic, expressive motion. We visualize the generated motion using highly photorealistic avatars that can express crucial nuances in gestures (e.g. sneers and smirks). To facilitate this line of research, we introduce a first-of-its-kind multi-view conversational dataset that allows for photorealistic reconstruction. Experiments show our model generates appropriate and diverse gestures, outperforming both diffusion- and VQ-only methods. Furthermore, our perceptual evaluation highlights the importance of photorealism (vs. meshes) in accurately assessing subtle motion details in conversational gestures. Code and dataset available online.

Perpetual futures are the most popular cryptocurrency derivatives. Perpetuals offer leveraged exposure to their underlying without rollover or direct ownership. Unlike fixed-maturity futures, perpetuals are not guaranteed to converge to the spot price. To minimize the gap between perpetual and spot prices, long investors periodically pay shorts a funding rate proportional to this difference. We derive no-arbitrage prices for perpetual futures in frictionless markets and bounds in markets with trading costs. Empirically, deviations from these prices in crypto are larger than in traditional currency markets, comove across currencies, and diminish over time. An implied arbitrage strategy yields high Sharpe ratios.