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We study a financial market where the risky asset is modelled by a geometric It\^o-L\'{e}vy process, with a singular drift term. This can for example model a situation where the asset price is partially controlled by a company which…

Mathematical Finance · Quantitative Finance 2020-08-24 Nacira Agram , Bernt Øksendal

In this article we develop an explicit formula for pricing European options when the underlying stock price follows a non-linear stochastic differential delay equation (sdde). We believe that the proposed model is sufficiently flexible to…

Probability · Mathematics 2008-12-02 Mercedes Arriojas , Yaozhong Hu , Salah-Eldin Mohammed , Gyula Pap

This paper (alongside its companion, Part II \cite{BSDEYoung-II}) investigates backward stochastic differential equations (BSDEs) involving a nonlinear Young integral of the form $\int_{t}^{T}g(Y_{r})\eta(dr,X_{r})$, where the driver…

Probability · Mathematics 2025-08-01 Jian Song , Huilin Zhang , Kuan Zhang

We analyze the valuation partial differential equation for European contingent claims in a general framework of stochastic volatility models where the diffusion coefficients may grow faster than linearly and degenerate on the boundaries of…

Probability · Mathematics 2011-12-13 Erhan Bayraktar , Constantinos Kardaras , Hao Xing

We consider a robust impulse control problem in finite horizon where the underlying uncertainty stems from an impulsively and continuously controlled functional stochastic differential equation (FSDE) driven by Brownian motion. We assume…

Optimization and Control · Mathematics 2021-03-31 Magnus Perninge

This article focuses on the mathematical problem of existence and uniqueness of BSDE with a random terminal time which is a general random variable but not a stopping time, as it has been usually the case in the previous literature of BSDE…

Computational Finance · Quantitative Finance 2011-05-20 Christophette Blanchet-Scalliet , Anne Eyraud-Loisel , Manuela Royer-Carenzi

In this work we mainly prove the existence and pathwise uniqueness of solutions to general backward doubly stochastic differential equations with jumps appearing in both forward and backward integral parts. Several comparison theorems under…

Probability · Mathematics 2017-04-12 Wei Xu

We show existence of a unique solution and a comparison theorem for a one-dimensional backward stochastic differential equation with jumps that emerge from a L\'evy process. The considered generators obey a time-dependent extended…

Probability · Mathematics 2019-01-21 Christel Geiss , Alexander Steinicke

We introduce and develop the concepts of Geometric Backward Stochastic Differential Equations (GBSDEs, for short) and two-driver BSDEs. We demonstrate their natural suitability for modeling continuous-time dynamic return risk measures. We…

Probability · Mathematics 2025-09-10 Roger J. A. Laeven , Emanuela Rosazza Gianin , Marco Zullino

We formulate an optimal switching problem when the underlying filtration is generated by a marked point process and a Brownian motion. Each mode is characterized by a different compensator for the point process, and thus by a different…

Probability · Mathematics 2017-11-01 Nahuel Foresta

In this paper, we introduce a large class of convergent numerical methods, based on (linear) basis function regression technique, to approximate the solution to a forward-backward stochastic differential equation with jumps (FBSDEJ…

Computational Finance · Quantitative Finance 2020-11-03 Tingting Ye , Liangliang Zhang

We consider the explicit numerical approximations of stochastic differential equations (SDEs) driven by Brownian process and Poisson jump. It is well known that under non-global Lipschitz condition, Euler Explicit method fails to converge…

Numerical Analysis · Mathematics 2018-02-21 Antoine Tambue , Jean Daniel Mukam

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 investigate large changes, bursts, of the continuous stochastic signals, when the exponent of multiplicativity is higher than one. Earlier we have proposed a general nonlinear stochastic model which can be transformed into Bessel process…

Statistical Finance · Quantitative Finance 2012-06-18 Vygintas Gontis , Aleksejus Kononovicius , Stefan Reimann

In this paper, we study conditions under which the solutions of a backward stochastic differential equation with jump remains in a given set of constrains. This property is the so-called "viability property". As an application, we study the…

Probability · Mathematics 2010-06-09 Xuehong Zhu

This article deals with the numerical resolution of backward stochastic differential equations. Firstly, we consider a rather general case where the filtration is generated by a Brownian motion and a Poisson random measure. We provide a…

Probability · Mathematics 2008-12-18 Emmanuel Gobet , Jean-Philippe Lemor

We study sequences of empirical measures of Euler schemes associated to some non-Markovian SDEs: SDEs driven by Gaussian processes with stationary increments. We obtain the functional convergence of this sequence to a stationary solution to…

Probability · Mathematics 2012-06-22 Serge Cohen , Fabien Panloup

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

We consider the Stochastic Differential Equation $X_t = X_0 + \int_0^t b(s,X_s) ds + B_t$, in $\mathbb{R}^d$. We give an example of a drift $b$ such that there does not exist a weak solution, but there exists a solution for almost every…

Probability · Mathematics 2022-04-19 Lukas Anzeletti

Although statistical inference in stochastic differential equations (SDEs) driven by Wiener process has received significant attention in the literature, inference in those driven by fractional Brownian motion seem to have seen much less…

Statistics Theory · Mathematics 2024-12-10 Trisha Maitra , Sourabh Bhattacharya