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Existence and uniqueness theorems for quantum stochastic differential equations with nontrivial initial conditions are proved for coefficients with completely bounded columns. Applications are given for the case of finite-dimensional…

Operator Algebras · Mathematics 2011-01-04 J. Martin Lindsay , Adam G. Skalski

Motivated from time-inconsistent stochastic control problems, we introduce a new type of coupled forward-backward stochastic systems, namely, flows of forward-backward stochastic differential equations. They are systems consisting of a…

Probability · Mathematics 2020-04-28 Yushi Hamaguchi

We present a novel approach to the pricing of financial instruments in emission markets, for example, the EU ETS. The proposed structural model is positioned between existing complex full equilibrium models and pure reduced form models.…

Pricing of Securities · Quantitative Finance 2015-06-03 Sam Howison , Daniel Schwarz

We shall study backward stochastic differential equations and we will present a new approach for the existence of the solution. This type of equation appears very often in the valuation of financial derivatives in complete markets.…

Optimization and Control · Mathematics 2013-10-11 Eduard Rotenstein

In this paper, we consider the solvability problems for the fully coupled forward-backward stochastic difference equations (FBS{\Delta}Es) on spaces related to discrete time, finite state processes. On one hand, we provide the necessary and…

Probability · Mathematics 2019-07-09 Shaolin Ji , Haodong Liu

In this paper, we show that the minimal solution of a backward stochastic differential equation gives a probabilistic representation of the minimal viscosity solution of an integro-partial differential equation both with a singular terminal…

Analysis of PDEs · Mathematics 2017-02-03 Alexandre Popier

The connection between forward backward doubly stochastic differential equations and the optimal filtering problem is established without using the Zakai's equation. The solutions of forward backward doubly stochastic differential equations…

Probability · Mathematics 2017-04-07 Feng Bao , Yanzhao Cao , Xiaoping Han

In this paper, we first establish the reflected backward stochastic difference equations with finite state (FS-RBSDEs for short). Then we explore the Existence and Uniqueness Theorem as well as the Comparison Theorem by "one step" method.…

Probability · Mathematics 2013-01-03 Lifen An , Shaolin Ji

In this paper we derive stochastic representations for the finite dimensional distributions of a multidimensional diffusion on a fixed time interval, conditioned on the terminal state. The conditioning can be with respect to a fixed point…

Probability · Mathematics 2014-07-29 Christian Bayer , John Schoenmakers

We consider backward stochastic differential equations (BSDEs) related to finite state, continuous time Markov chains. We show that appropriate solutions exist for arbitrary terminal conditions, and are unique up to sets of measure zero. We…

Probability · Mathematics 2008-10-01 Samuel N. Cohen , Robert J. Elliott

We provide a probabilistic solution of a not necessarily Markovian control problem with a state constraint by means of a Backward Stochastic Differential Equation (BSDE). The novelty of our solution approach is that the BSDE possesses a…

Optimization and Control · Mathematics 2013-06-04 Stefan Ankirchner , Monique Jeanblanc , Thomas Kruse

This paper is devoted to a study of the unique continuation property for stochastic parabolic equations. Due to the adapted nature of solutions in the stochastic situation, classical approaches to treat the the unique continuation problem…

Analysis of PDEs · Mathematics 2007-05-23 Xu Zhang

A splitting scheme for backward doubly stochastic differential equations is proposed. The main idea is to decompose a backward doubly stochastic differential equation into a backward stochastic differential equation and a stochastic…

Numerical Analysis · Mathematics 2021-03-17 Feng Bao , Yanzhao Cao , He Zhang

A recently proposed stochastic hidden variable model for quantum mechanics has been claimed to involve "retrocausality" due to the appearance of equations of motion with future-time boundary conditions. We formulate an equivalent system of…

Quantum Physics · Physics 2025-12-05 William S. DeWitt , Benjamin H. Feintzeig

We present difference schemes for stochastic transport equations with low-regularity velocity fields. We establish $L^2$ stability and convergence of the difference approximations under conditions that are less strict than those required…

Numerical Analysis · Mathematics 2025-01-27 Ulrik S. Fjordholm , Kenneth H. Karlsen , Peter H. C. Pang

Existence and uniqueness results of fully coupled forward stochastic differential equations without drifts and backward stochastic differential equations in a degenerate case are obtained for an arbitrarily large time duration.

Probability · Mathematics 2022-10-21 Takahiro Tsuchiya

We introduce a new class of anticipative backward stochastic differential equations with a dependence of McKean type on the law of the solution, that we name MKABSDE. We provide existence and uniqueness results in a general framework with…

Pricing of Securities · Quantitative Finance 2024-08-05 A. Agarwal , S. De Marco , E. Gobet , J. G. Lopez-Salas , F. Noubiagain , A. Zhou

The distributional properties of a multi-dimensional continuous-state branching process are determined by its cumulant semigroup, which is defined by the backward differential equation. We provide a proof of the assertion of Rhyzhov and…

Probability · Mathematics 2024-05-10 Pei-Sen Li , Zenghu Li

In this paper, we study the existence of random periodic solutions for semilinear stochastic differential equations. We identify these as the solutions of coupled forward-backward infinite horizon stochastic integral equations in general…

Probability · Mathematics 2015-02-11 Chunrong Feng , Huaizhong Zhao , Bo Zhou

We consider a class of Backward Stochastic Differential Equations with superlinear driver process $f$ adapted to a filtration supporting at least a $d$ dimensional Brownian motion and a Poisson random measure on ${\mathbb R}^m- \{0\}.$ We…

Probability · Mathematics 2019-11-19 Mahdi Ahmadi , Alexandre Popier , Ali Devin Sezer