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We propose a new numerical method for one dimensional stochastic differential equations (SDEs). The main idea of this method is based on a representation of a weak solution of a SDE with a time changed Brownian motion, dated back to Doeblin…

Probability · Mathematics 2020-06-05 Masaaki Fukasawa , Mitsumasa Ikeda

In this paper, using an algorithm based on the retrospective rejection sampling scheme, we propose an exact simulation of a Brownian diffusion whose drift admits several jumps. We treat explicitly and extensively the case of two jumps,…

Probability · Mathematics 2016-05-27 David Dereudre , Sara Mazzonetto , Sylvie Roelly

We prove well-posedness results for backward stochastic differential equations (BSDEs) and reflected BSDEs with an optional obstacle process in the case of appropriately weighted $\mathbb{L}^2$-data when the generator is integrated with…

Probability · Mathematics 2024-12-13 Dylan Possamaï , Marco Rodrigues

This paper proves the existence and uniqueness of a solution to doubly reflected backward stochastic differential equations where the coefficient is stochastic Lipschitz, by means of the penalization method.

Probability · Mathematics 2018-01-04 Mohamed Marzougue , Mohamed El Otmani

In this paper, we introduce a new kind of reflected backward stochastic differential equations (RBSDEs) driven by a martingale, in a Markov chain model, but not driven by Brownian motion, and give existence and uniqueness results for the…

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

Backward stochastic differential equations (BSDEs) appear in numeruous applications. Classical approximation methods suffer from the curse of dimensionality and deep learning-based approximation methods are not known to converge to the BSDE…

Probability · Mathematics 2022-04-20 Martin Hutzenthaler , Tuan Anh Nguyen

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

The aim of this paper is to represent any continuous local martingale as an almost sure limit of a nested sequence of simple, symmetric random walks, time changed by a discrete quadratic variation process. One basis of this is a similar…

Probability · Mathematics 2010-08-10 Balazs Szekely , Tamas Szabados

We present a numerical method for the approximation of solutions for the class of stochastic differential equations driven by Brownian motions which induce stochastic variation in fixed directions. This class of equations arises naturally…

Numerical Analysis · Mathematics 2010-06-15 David F. Anderson , Jonathan C. Mattingly

A novel discretization is presented for forward-backward stochastic differential equations (FBSDE) with differentiable coefficients, simultaneously solving the BSDE and its Malliavin sensitivity problem. The control process is estimated by…

Numerical Analysis · Mathematics 2021-10-12 Balint Negyesi , Kristoffer Andersson , Cornelis W. Oosterlee

In this paper, we study the existence and uniqueness of $\mathbb{L}^p$-solutions for $p \in (1, 2)$, first for backward stochastic differential equations (BSDEs) in a general filtration that supports a Brownian motion and an independent…

Probability · Mathematics 2025-08-12 Badr Elmansouri

This paper discusses a new type of anticipated backward stochastic differential equation with a time-delayed generator (DABSDEs, for short) driven by fractional Brownian motion, also known as fractional BSDEs, with Hurst parameter…

Probability · Mathematics 2023-05-24 Pei Zhang , Nur Anisah Mohamed , Adriana Irawati Nur Ibrahim

In this paper, we present a novel explicit second order scheme with one step for solving the forward backward stochastic differential equations, with the Crank-Nicolson method as a specific instance within our proposed framework. We first…

Numerical Analysis · Mathematics 2025-11-25 Qiang Han , Shihao Lan , Quanxin Zhu

In this paper, we introduce a new kind of "variant" reflected backward doubly stochastic differential equations (VRBDSDEs in short), where the drift is the nonlinear function of the barrier process. In the one stochastic case, this type of…

Probability · Mathematics 2011-08-04 Auguste Aman , Yong Ren

Differential Dynamic Programming (DDP) has become a well established method for unconstrained trajectory optimization. Despite its several applications in robotics and controls however, a widely successful constrained version of the…

Optimization and Control · Mathematics 2020-05-05 Yuichiro Aoyama , George Boutselis , Akash Patel , Evangelos A. Theodorou

In this paper, we study existence and uniqueness to multidimensional Reflected Backward Stochastic Differential Equation in an open convex domain, allowing for oblique directions of reflection. In a Markovian framework, combining \emph{a…

Probability · Mathematics 2018-07-18 Jean-François Chassagneux , Adrien Richou

It is now established that under quite general circumstances, including in models with jumps, the existence of a solution to a reflected BSDE is guaranteed under mild conditions, whereas the existence of a solution to a doubly reflected…

Probability · Mathematics 2008-11-17 Stéphane Crépey , Anis Matoussi

Forward-backward stochastic differential equations (FBSDEs) have been generalized by introducing jumps for better capturing random phenomena, while the resulting FBSDEs are far more intricate than the standard one from every perspective. In…

Numerical Analysis · Mathematics 2024-10-15 Reiichiro Kawai , Riu Naito , Toshihiro Yamada

In this paper, an optimal switching problem is proposed for one-dimensional reflected backward stochastic differential equations (RBSDEs, for short) where the generators, the terminal values and the barriers are all switched with positive…

Probability · Mathematics 2013-04-03 Shanjian Tang , Wei Zhong , Hyeng Keun Koo

In this paper we study multi-dimensional reflected backward stochastic differential equations driven by Wiener-Poisson type processes. We prove existence and uniqueness of solutions, with reflection in the inward spatial normal direction,…

Probability · Mathematics 2015-03-12 Kaj Nyström , Marcus Olofsson
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