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In this paper, we present a new simple method for solving two integral equations of Love's type that have many applications, especially in electrostatic systems. The approach of the solution is based on an innovative technique using matrix algebra for the barycentric Lagrange interpolation. The unknown function is expressed through the product of four matrices. The kernel is interpolated twice, so we get it in the product of five matrices. Additionally, we derive an equivalent linear algebraic system to the solution by substituting the matrix-vector barycentric interpolated unknown function together with the double interpolated kernel into both sides of the integral equation. Thus, there was no need to employ the collocation method. The obtained results converge strongly with the approximate analytical solutions, in addition to being uniformly approximated, continuous, and even, which proves the validity of the solution by the presented method. [ABSTRACT FROM AUTHOR]

Regime-switching models have been heavily studied recently, as they have some clear advantages of over other non-constant volatility model to resolve the so-called smirk effect displayed when constant volatility models are used to price financial derivatives such as options. However, due to the increased model complexity, the associated computational effort usually increases as well, particularly when they are used to price American-style options. In this paper, a novel computational approach based on integral equations is presented. A distinctive feature of our approach, in comparison with other numerical approaches, is that the coupled partial differential equations (PDEs) in a PDE system have been decoupled in the Fourier space, resulting in a completely decoupled integral equation for each economical states, and thus has greatly reduced computational effort. Some examples with preliminary results for a two-state regime-switching model are used to demonstrate our approach. [ABSTRACT FROM AUTHOR]