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In this paper we study different algorithms for backward stochastic differential equations (BSDE in short) basing on random walk framework for 1-dimensional Brownian motion. Implicit and explicit schemes for both BSDE and reflected BSDE are…

Probability · Mathematics 2009-09-23 Shige Peng , Mingyu Xu

We study the weak approximation of the second-order backward SDEs (2BSDEs), when the continuous driving martingales are approximated by discrete time martingales. We establish a convergence result for a class of 2BSDEs, using both…

Probability · Mathematics 2015-09-10 Dylan Possamaï , Xiaolu Tan

We study supersolutions of a backward stochastic differential equation, the control processes of which are constrained to be continuous semimartingales of the form $dZ = {\Delta}dt + {\Gamma}dW$. The generator may depend on the…

Probability · Mathematics 2016-04-20 Gregor Heyne , Michael Kupper , Christoph Mainberger , Ludovic Tangpi

We address a general optimal switching problem over finite horizon for a stochastic system described by a differential equation driven by Brownian motion. The main novelty is the fact that we allow for infinitely many modes (or regimes,…

Optimization and Control · Mathematics 2019-08-07 Marco Fuhrman , Marie-Amélie Morlais

This paper deals with the problem of existence and uniqueness of a solution for a backward stochastic differential equation (BSDE for short) with one reflecting barrier in the case when the terminal value, the generator and the obstacle…

Probability · Mathematics 2008-07-14 Said Hamadene , Alexandre Popier

In this note, we extend some recent results on systems of backward stochastic differential equations (BSDEs) with quadratic growth to the case of coupled forward-backward stochastic differential equations (FBSDEs). We work in a Markovian…

Probability · Mathematics 2023-04-05 Joe Jackson

In this paper, by introducing a new notion of envelope of the stochastic process, we construct a family of random differential equations whose solutions can be viewed as solutions of a family of ordinary differential equations and prove…

Probability · Mathematics 2015-08-28 Min Li , Yufeng Shi

Backward stochastic partial differential equations of parabolic type in bounded domains are studied in the setting where the coercivity condition is not necessary satisfied and the equation can be degenerate. Some generalized solutions…

Probability · Mathematics 2014-05-26 Nikolai Dokuchaev

Backward stochastic differential equations (BSDEs) belong nowadays to the most frequently studied equations in stochastic analysis and computational stochastics. In this paper we prove that Picard iterations of BSDEs with globally Lipschitz…

Probability · Mathematics 2022-10-05 Arzu Ahmadova , Nazim I. Mahmudov

The goal of this paper is to solve backward doubly stochastic differential equation (BDSDE, in short) under weak assumptions on the data. The first part is devoted to the development of some new technical aspects of stochastic calculus…

Probability · Mathematics 2011-08-04 Auguste Aman

We consider a reflected backward stochastic differential equations with default time and an optional barrier in a filtration generated by a one-dimensional Brownian motion and a defaultable process. We suppose that the barrier have…

Probability · Mathematics 2026-05-07 Badr Elmansouri , Mohamed El Otmani

This study focuses on a multidimensional backward stochastic differential equation (BSDE) with a general random terminal time $\tau$ taking values in $[0,+\infty]$. The generator $g$ satisfies a stochastic monotonicity condition in the…

Probability · Mathematics 2024-12-24 Xinying Li , Yaqi Zhang , Shengjun Fan

This paper is devoted to the existence, uniqueness and comparison theorem on unbounded solutions of one-dimensional backward stochastic differential equations (BSDEs) with sub-quadratic generators, where the terminal time is allowed to be…

Probability · Mathematics 2024-06-11 Chuang Gu , Yan Wang , Shengjun Fan

We address a class of backward stochastic differential equations on a bounded interval, where the driving noise is a marked, or multivariate, point process. Assuming that the jump times are totally inaccessible and a technical condition…

Probability · Mathematics 2016-06-28 Fulvia Confortola , Marco Fuhrman , Jean Jacod

This paper is concerned with the existence and uniqueness of weak solutions to the Cauchy-Dirichlet problem of backward stochastic partial differential equations (BSPDEs) with nonhomogeneous terms of quadratic growth in both the gradient of…

Probability · Mathematics 2012-07-24 Kai Du , Shaokuan Chen

Backward Stochastic Differential Equations (BSDEs) have been widely employed in various areas of social and natural sciences, such as the pricing and hedging of financial derivatives, stochastic optimal control problems, optimal stopping…

Numerical Analysis · Mathematics 2023-04-10 Jared Chessari , Reiichiro Kawai , Yuji Shinozaki , Toshihiro Yamada

We develop a multilevel approach to compute approximate solutions to backward differential equations (BSDEs). The fully implementable algorithm of our multilevel scheme constructs sequential martingale control variates along a sequence of…

Probability · Mathematics 2014-12-11 Dirk Becherer , Plamen Turkedjiev

In 2013, Lu and Ren \cite {luren} considered anticipated backward stochastic differential equations driven by finite state, continuous time Markov chain noise and established the existence and uniqueness of the solutions of these equations…

Probability · Mathematics 2015-05-14 Zhe Yang , Robert J. Elliott

In this paper, we study reflected backward stochastic differential equation (reflected BSDE in abbreviation) with rank-based data in a Markovian framework; that is, the solution to the reflected BSDE is above a prescribed boundary process…

Probability · Mathematics 2020-07-14 Zhen-Qing Chen , Xinwei Feng

Backward stochastic differential equations extend the martingale representation theorem to the nonlinear setting. This can be seen as path-dependent counterpart of the extension from the heat equation to fully nonlinear parabolic equations…

Probability · Mathematics 2022-02-14 Yiqing Lin , Zhenjie Ren , Nizar Touzi , Junjian Yang