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Related papers: A Fully Quantization-based Scheme for FBSDEs

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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

Inspired by recent progress in quantum algorithms for ordinary and partial differential equations, we study quantum algorithms for stochastic differential equations (SDEs). Firstly we provide a quantum algorithm that gives a quadratic…

Quantum Physics · Physics 2021-06-30 Dong An , Noah Linden , Jin-Peng Liu , Ashley Montanaro , Changpeng Shao , Jiasu Wang

This note describes the full approximation storage (FAS) multigrid scheme for an easy one-dimensional nonlinear boundary value problem. The problem is discretized by a simple finite element (FE) scheme. We apply both FAS V-cycles and…

Numerical Analysis · Mathematics 2022-02-03 Ed Bueler

Using purely probabilistic methods, we prove the existence and the uniqueness of solutions fora system of coupled forward-backward stochastic differential equations (FBSDEs) with measurable, possibly discontinuous coefficients. As a…

Probability · Mathematics 2021-10-12 Kihun Nam , Yunxi Xu

In this paper we lay the foundation for a numerical algorithm to simulate high-dimensional coupled FBSDEs under weak coupling or monotonicity conditions. In particular, we prove convergence of a time discretization and a Markovian…

Probability · Mathematics 2008-01-28 Christian Bender , Jianfeng Zhang

We introduce a novel numerical approach for a class of stochastic dynamic programs which arise as discretizations of backward stochastic differential equations or semi-linear partial differential equations. Solving such dynamic programs…

Numerical Analysis · Mathematics 2016-06-24 Christian Bender , Christian Gaertner , Nikolaus Schweizer

The convolution method for the numerical solution of forward-backward stochastic differential equations (FBSDEs), introduced in [21], uses a uniform space grid. In this paper we utilize a tree-like spatial discretization that approximates…

Computational Finance · Quantitative Finance 2022-05-23 Polynice Oyono Ngou , Cody Hyndman

We derive and analyze a fully computable discrete scheme for fractional partial differential equations posed on the full space $\mathbb{R}^d$ . Based on a reformulation using the well-known Caffarelli-Silvestre extension, we study a…

Numerical Analysis · Mathematics 2023-02-23 Markus Faustmann , Alexander Rieder

In this article, we propose a Milstein finite difference scheme for a stochastic partial differential equation (SPDE) describing a large particle system. We show, by means of Fourier analysis, that the discretisation on an unbounded domain…

Numerical Analysis · Mathematics 2012-04-09 Michael B. Giles , Christoph Reisinger

We propose and analyse a new Milstein type scheme for simulating stochastic differential equations (SDEs) with highly nonlinear coefficients. Our work is motivated by the need to justify multi-level Monte Carlo simulations for…

Numerical Analysis · Mathematics 2012-04-10 Desmond J. Higham , Xuerong Mao , Lukasz Szpruch

A multivariate quantile regression model with a factor structure is proposed to study data with many responses of interest. The factor structure is allowed to vary with the quantile levels, which makes our framework more flexible than the…

Methodology · Statistics 2020-01-22 Shih-Kang Chao , Wolfgang Karl Härdle , Ming Yuan

In this paper, we investigate the Markovian iteration method for solving coupled forward-backward stochastic differential equations (FBSDEs) featuring a fully coupled forward drift, meaning the drift term explicitly depends on both the…

Numerical Analysis · Mathematics 2025-04-04 Zhipeng Huang , Cornelis W. Oosterlee

In this article, an overview of Bayesian methods for sequential simulation from posterior distributions of nonlinear and non-Gaussian dynamic systems is presented. The focus is mainly laid on sequential Monte Carlo methods, which are based…

Methodology · Statistics 2023-04-28 Konstantinos E. Tatsis , Vasilis K. Dertimanis , Eleni N. Chatzi

Decentralized Exchanges are becoming even more predominant in today's finance. Driven by the need to study this phenomenon from an academic perspective, the SIAG/FME Code Quest 2023 was announced. Specifically, participating teams were…

Portfolio Management · Quantitative Finance 2024-06-13 Daniele Maria Di Nosse , Federico Gatta

We propose a generalized multiscale finite element method (GMsFEM) based on clustering algorithm to study the elliptic PDEs with random coefficients in the multi-query setting. Our method consists of offline and online stages. In the…

Numerical Analysis · Mathematics 2018-08-01 Eric T. Chung , Yalchin Efendiev , Wing Tat Leung , Zhiwen Zhang

This paper is concerned with the decoupling of delayed linear forward-backward stochastic differential equations (D-FBSDEs), which is much more involved than the delay-free case due to the infinite dimension caused by the delay. A new…

Optimization and Control · Mathematics 2020-09-23 Tianfu Ma , Juanjuan Xu , Huanshui Zhang

We study a discrete-time approximation for solutions of systems of decoupled forward-backward doubly stochastic differential equations (FBDSDEs). Assuming that the coefficients are Lipschitz-continuous, we prove the convergence of the…

Probability · Mathematics 2009-07-14 Auguste Aman

We propose a probabilistic numerical algorithm to solve Backward Stochastic Differential Equations (BSDEs) with nonnegative jumps, a class of BSDEs introduced in [9] for representing fully nonlinear HJB equations. In particular, this allows…

Probability · Mathematics 2019-07-11 Idris Kharroubi , Nicolas Langrené , Huyên Pham

We describe and analyze an efficient register-based hybrid quantum computation scheme. Our scheme is based on probabilistic, heralded optical connection among local five-qubit quantum registers. We assume high fidelity local unitary…

Quantum Physics · Physics 2007-12-27 Liang Jiang , Jacob M. Taylor , Anders S. Sørensen , Mikhail D. Lukin

We investigate a class of non-Markovian processes that hold particular relevance in the realm of mathematical finance. This family encompasses path-dependent volatility models, including those pioneered by [Platen and Rendek, 2018] and,…

Mathematical Finance · Quantitative Finance 2026-01-19 Martino Grasselli , Gilles Pagès