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Related papers: Analytical Approximation for Non-linear FBSDEs wit…

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In this paper, we propose an efficient Monte Carlo implementation of non-linear FBSDEs as a system of interacting particles inspired by the ideas of branching diffusion method. It will be particularly useful to investigate large and complex…

Computational Finance · Quantitative Finance 2012-04-24 Masaaki Fujii , Akihiko Takahashi

In this work, we study the numerical approximation of a class of singular fully coupled forward backward stochastic differential equations. These equations have a degenerate forward component and non-smooth terminal condition. They are…

Numerical Analysis · Mathematics 2022-08-17 Jean-François Chassagneux , Mohan Yang

We propose a new multistep deep learning-based algorithm for the resolution of moderate to high dimensional nonlinear backward stochastic differential equations (BSDEs) and their corresponding parabolic partial differential equations (PDE).…

Numerical Analysis · Mathematics 2023-08-29 Daniel Bussell , Camilo Andrés García-Trillos

We present a non-intrusive gradient and a non-intrusive BFGS algorithm for parameter estimation problems in non-stationary elasticity. To avoid multiple (and potentially expensive) solutions of the underlying partial differential equation…

Numerical Analysis · Mathematics 2024-08-19 Stefan Frei , Jan Reichle , Stefan Volkwein

In this work, we apply our newly proposed perturbative expansion technique to a quadratic growth FBSDE appearing in an incomplete market with stochastic volatility that is not perfectly hedgeable. By combining standard asymptotic expansion…

Computational Finance · Quantitative Finance 2012-09-07 Masaaki Fujii , Akihiko Takahashi

Motivated by the idea of imposing paralleling computing on solving stochastic differential equations (SDEs), we introduce a new Domain Decomposition Scheme to solve forward-backward stochastic differential equations (FBSDEs) parallely. We…

Numerical Analysis · Mathematics 2010-08-03 Minh-Binh Tran

We introduce the deep multi-FBSDE method for robust approximation of coupled forward-backward stochastic differential equations (FBSDEs), focusing on cases where the deep BSDE method of Han, Jentzen, and E (2018) fails to converge. To…

Numerical Analysis · Mathematics 2025-06-03 Kristoffer Andersson , Adam Andersson , Cornelis W. Oosterlee

We propose and study a scheme combining the finite element method and machine learning techniques for the numerical approximations of coupled nonlinear forward-backward stochastic partial differential equations (FBSPDEs) with homogeneous…

Numerical Analysis · Mathematics 2020-12-16 Hasib Uddin Molla , Jinniao Qiu

In this paper, we present a backward deep BSDE method applied to Forward Backward Stochastic Differential Equations (FBSDE) with given terminal condition at maturity that time-steps the BSDE backwards. We present an application of this…

Computational Finance · Quantitative Finance 2020-06-16 Yajie Yu , Bernhard Hientzsch , Narayan Ganesan

Developing efficient and stable approximations for high dimensional PDEs is of key importance for numerous applications. The language of Forward-Backward Stochastic Differential Equations (FBSDE), with its nonlinear Feynman-Kac formula,…

Numerical Analysis · Mathematics 2017-08-11 Arnaud Lionnet , Gonçalos dos Reis , Lukasz Szpruch

In this paper we introduce a numerical method for nonlinear parabolic PDEs that combines operator splitting with deep learning. It divides the PDE approximation problem into a sequence of separate learning problems. Since the computational…

Numerical Analysis · Mathematics 2021-10-12 Christian Beck , Sebastian Becker , Patrick Cheridito , Arnulf Jentzen , Ariel Neufeld

We present a rigorous convergence analysis for cylindrical approximations of nonlinear functionals, functional derivatives, and functional differential equations (FDEs). The purpose of this analysis is twofold: first, we prove that…

Numerical Analysis · Mathematics 2021-03-17 Daniele Venturi , Alec Dektor

We apply the linear $\delta$-expansion (LDE), originally developed as a nonperturbative, analytical approximation scheme in quantum field theory, to problems involving noninteracting electrons in disordered solids. The initial idea that the…

Disordered Systems and Neural Networks · Physics 2009-10-30 M. P. Blencowe , A. P. Korte

We consider some certain nonlinear perturbations of the stochastic linear-quadratic optimization problems and study the connections between their solutions and the corresponding Markovian backward stochastic diferential equations (BSDEs).…

Optimization and Control · Mathematics 2013-01-01 Coskun Cetin

Recently, in a paper by Jentzen and Kloeden [Proc. R. Soc. Lond. Ser. A Math. Phys. Eng. Sci. 465 (2009) 649-667], a new method for simulating nearly linear stochastic partial differential equations (SPDEs) with additive noise has been…

Probability · Mathematics 2012-11-01 Arnulf Jentzen , Peter Kloeden , Georg Winkel

In this paper, an analytic approximation method for highly nonlinear equations, namely the homotopy analysis method (HAM), is employed to solve some backward stochastic differential equations (BSDEs) and forward-backward stochastic…

Numerical Analysis · Mathematics 2018-01-25 Xiaoxu Zhong , Shijun Liao

In this study, perturbation-iteration algorithm, namely PIA, is applied to solve some types of system of fractional differential equations (FDEs) for the first time. To illustrate the efficiency of the method, numerical solutions are…

Numerical Analysis · Mathematics 2016-07-29 Mehmet Senol , I. T. Dolapci

High-dimensional partial differential equations (PDE) appear in a number of models from the financial industry, such as in derivative pricing models, credit valuation adjustment (CVA) models, or portfolio optimization models. The PDEs in…

Numerical Analysis · Mathematics 2020-07-15 Christian Beck , Weinan E , Arnulf Jentzen

This study develops a numerical scheme for path-dependent FBSDEs and PDEs. We introduce a Picard iteration method for solving path-dependent FBSDEs, prove its convergence to the true solution, and establish its rate of convergence. A key…

Probability · Mathematics 2025-10-01 Jiuk Jang , Hyungbin Park

In this work, we investigate the numerical approximation of the second order non-autonomous semilnear parabolic partial differential equation (PDE) using the finite element method. To the best of our knowledge, only the linear case is…

Numerical Analysis · Mathematics 2020-01-27 Antoine Tambue , Jean Daniel Mukam
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