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We provide a variational formulation in a weighted Sobolev space, and establish existence and uniqueness instabang free chat the FEM-based solution. Then we discuss the localization of the infinite domain problem to a finite gove ks housewives personals and analyze its error. We tackle the localized problem by an explicit-implicit time-discretization of the PIDE, where the space-discretization is done through a standard continuous finite element method. Error estimates are given for the fully discretized localized problem where two assets are assumed to have uncorrelated jumps. Numerical experiments for the polynomial option and a few other two-asset options shed light on good performance of our proposed method.
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