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In the setting of stochastic Volterra equations, and in particular rough volatility models, we show that conditional expectations are the unique classical solutions to path-dependent PDEs. The latter arise from the functional It\^o formula…

Probability · Mathematics 2026-05-27 Ofelia Bonesini , Antoine Jacquier , Alexandre Pannier

This paper extends the results of Ma, Wu, Zhang, Zhang [11] to the context of path-dependent multidimensional forward-backward stochastic differential equations (FBSDE). By path-dependent we mean that the coefficients of the…

Probability · Mathematics 2022-01-14 Kaitong Hu , Zhenjie Ren , Nizar Touzi

In this note we provide conditions for local invariance of finite dimensional submanifolds for solutions to stochastic partial differential equations (SPDEs) in the framework of the variational approach. For this purpose, we provide a…

Probability · Mathematics 2025-11-21 Rajeev Bhaskaran , Stefan Tappe

We demonstrate that backward stochastic differential equations (BSDE) may be reformulated as ordinary functional differential equations on certain path spaces. In this framework, neither It\^{o}'s integrals nor martingale representation…

Probability · Mathematics 2012-11-20 Gechun Liang , Terry Lyons , Zhongmin Qian

We study a market model in which the volatility of the stock may jump at a random time from a fixed value to another fixed value. This model was already described in the literature. We present a new approach to the problem, based on partial…

Statistical Mechanics · Physics 2008-12-02 Miquel Montero

The price of a financial derivative can be expressed as an iterated conditional expectation, where the inner term conditions on the future of an auxiliary process. We show that this inner conditional expectation solves an SPDE (a…

Mathematical Finance · Quantitative Finance 2026-02-11 Kaustav Das , Ivan Guo , Grégoire Loeper

We propose a general, very fast method to quickly approximate the solution of a parabolic Partial Differential Equation (PDEs) with explicit formulas. Our method also provides equaly fast approximations of the derivatives of the solution,…

Computational Finance · Quantitative Finance 2018-12-27 Olesya Grishchenko , Xiao Han , Victor Nistor

Lecture notes accompanying an 8hr hour mini-course on SPDE given at Bo\u{g}azi\c{c}i University, Istanbul in June/July 2025. They are based on earlier notes of a shorter mini-course given at the University of Oxford in 2021. The main focus…

Probability · Mathematics 2025-08-01 Avi Mayorcas

This paper introduces the path derivatives, in the spirit of Dupire's functional It\^o calculus, for the controlled paths in the rough path theory with possibly non-geometric rough paths. The theory allows us to deal with rough integration…

Probability · Mathematics 2014-12-24 Christian Keller , Jianfeng Zhang

We give meaning to linear and semi-linear (possibly degenerate) parabolic partial differential equations with (affine) linear rough path noise and establish stability in a rough path metric. In the case of enhanced Brownian motion (Brownian…

Probability · Mathematics 2013-01-17 Peter Friz , Harald Oberhauser

A backward stochastic differential equation (BSDE) is an SDE of the form $-dY_t = f(t,Y_t,Z_t)dt - Z_t^*dW_t;\ Y_T = \xi$. The subject of BSDEs has seen extensive attention since their introduction in the linear case by Bismut (1973) and in…

Probability · Mathematics 2023-12-13 Weiye Yang

The purpose of the present paper is to derive a partial differential equation (PDE) for the single-time single-point probability density function (PDF) of the velocity field of a turbulent flow. The PDF PDE is a highly non-linear…

Mathematical Physics · Physics 2021-07-08 Jiawei Li , Zhongmin Qian , Mingrui Zhou

In this paper, we introduce a class of stochastic partial differential equations (SPDEs) with fractional time-derivatives, and study the $L_2$-theory of the equations. This class of SPDEs can be used to describe random effects on transport…

Probability · Mathematics 2014-04-08 Zhen-Qing Chen , Kyeong-Hun Kim , Panki Kim

This paper presents a class of turbulence models written in terms of fractional partial differential equations (FPDEs) with stochastic loads. Every solution of these FPDE models is an incompressible velocity field and the distribution of…

Fluid Dynamics · Physics 2021-07-01 Brendan Keith , Ustim Khristenko , Barbara Wohlmuth

In this article, we show how the theory of rough paths can be used to provide a notion of solution to a class of nonlinear stochastic PDEs of Burgers type that exhibit too high spatial roughness for classical analytical methods to apply. In…

Probability · Mathematics 2010-08-11 Martin Hairer

We study fully nonlinear second-order (forward) stochastic partial differential equations (SPDEs). They can also be viewed as forward path-dependent PDEs (PPDEs) and will be treated as rough PDEs (RPDEs) under a unified framework. We…

Probability · Mathematics 2018-10-02 Rainer Buckdahn , Christian Keller , Jin Ma , Jianfeng Zhang

We consider rough differential equations whose coefficients contain path-dependent bounded variation terms and prove the existence and a priori estimate of solutions. These equations include classical path-dependent SDEs containing running…

Probability · Mathematics 2024-03-12 Shigeki Aida

The aim of this paper is to introduce a new formalism for the deterministic analysis associated with backward stochastic differential equations driven by general c{\`a}dl{\`a}g martingales. When the martingale is a standard Brownian motion,…

Probability · Mathematics 2016-03-25 Ismail Laachir , Francesco Russo

The vorticity random field of turbulent flow is singled out as the main dynamical variable for the description of turbulence, and the evolution equation of the probability density function (PDF) of the vorticity field has been obtained.…

Fluid Dynamics · Physics 2022-02-23 Jiawei Li , Zhongmin Qian , Mingrui Zhou

In this paper, we study the existence and uniqueness of solutions to quadratic Backward Stochastic Differential Equations (QBSDEs for short) with rough driver and square integrable terminal condition. The main idea consists in using both…

Probability · Mathematics 2014-03-13 M'hamed Eddahbi , Abou Sène