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In this work, the Fourier-cosine series (COS) method has been combined with the Boundary Element Method (BEM) for a fast evaluation of barrier option prices. After a description of its use in the Black and Scholes (BS) model, the focus of the paper is on the application of the proposed methodology to the barrier option evaluation in the Heston model, where its contribution is fundamental to improve computational efficiency and to make BEM appealing among finance practitioners as a valid alternative to Monte Carlo (MC) or other more traditional approaches. An error analysis is provided on the number of terms used in the Fourier-cosine series expansion, where the error bound estimation is based on the characteristic function of the log-asset price process. A Matlab code implementing this technique is attached at the end of the paper. [ABSTRACT FROM AUTHOR]

The interaction between laser beams and backscattering object surfaces lies at the fundamental working principle of any Terrestrial Laser Scanning (TLS) system. Optical properties of surfaces such as concrete, metals, wood, etc., which are commonly encountered in structural health monitoring of buildings and structures, constitute an important category of systematic and random TLS errors. This paper presents an approach for considering the random errors caused by object surfaces. Two surface properties are considered: roughness and reflectance. The effects on TLS measurements are modeled stepwise in form of a so-called synthetic variance-covariance matrix (SVCM) based on the elementary error theory. A line of work is continued for the TLS stochastic model by introducing a new approach for determining variances and covariances in the SVCM. Real measurements of cast stone façade elements of a tall building are used to validate this approach and show that the quality of the estimation can be improved with the appropriate SVCM. [ABSTRACT FROM AUTHOR]