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In this paper, we mainly focus on solving high-dimensional stochastic Hamiltonian systems with boundary condition, which is essentially a Forward Backward Stochastic Differential Equation (FBSDE in short), and propose a novel method from…

Optimization and Control · Mathematics 2021-12-13 Shaolin Ji , Shige Peng , Ying Peng , Xichuan Zhang

We introduce a generalization of the linearized Alternating Direction Method of Multipliers to optimize a real-valued function $f$ of multiple arguments with potentially multiple constraints $g_\circ$ on each of them. The function $f$ may…

Optimization and Control · Mathematics 2019-01-28 Fred Moolekamp , Peter Melchior

This paper is dedicated to solving high-dimensional coupled FBSDEs with non-Lipschitz diffusion coefficients numerically. Under mild conditions, we provided a posterior estimate of the numerical solution that holds for any time duration.…

Probability · Mathematics 2022-01-19 Yifan Jiang , Jinfeng Li

We develop a multilevel approach to compute approximate solutions to backward differential equations (BSDEs). The fully implementable algorithm of our multilevel scheme constructs sequential martingale control variates along a sequence of…

Probability · Mathematics 2014-12-11 Dirk Becherer , Plamen Turkedjiev

The maximum principle for optimal control problems of fully coupled forward-backward doubly stochastic differential equations (FBDSDEs in short) in the global form is obtained, under the assumptions that the diffusion coefficients do not…

Optimization and Control · Mathematics 2012-05-28 Liangquan Zhang , Yufeng Shi

In this paper, we investigate two families of fully coupled linear Forward-Backward Stochastic Differential Equations (FBSDE). Within these families, one could get the same well-posedness of FBSDEs with totally different structures. The…

Optimization and Control · Mathematics 2022-05-17 Ruyi Liu , Zhen Wu , Detao Zhang

In this paper, we study the solvability of a class of multi-dimensional forward backward stochastic differential equations (FBSDEs) with oblique reflection and unbounded stopping time. Under some mild assumptions on the coefficients in such…

Probability · Mathematics 2012-07-03 Soufiane Aazizi , Imade Fakhouri

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

Recently, the deep learning method has been used for solving forward-backward stochastic differential equations (FBSDEs) and parabolic partial differential equations (PDEs). It has good accuracy and performance for high-dimensional…

Numerical Analysis · Mathematics 2020-02-04 Shaolin Ji , Shige Peng , Ying Peng , Xichuan 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

Backward Stochastic Differential Equations (BSDEs) have been widely employed in various areas of social and natural sciences, such as the pricing and hedging of financial derivatives, stochastic optimal control problems, optimal stopping…

Numerical Analysis · Mathematics 2023-04-10 Jared Chessari , Reiichiro Kawai , Yuji Shinozaki , Toshihiro Yamada

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

The optimal stopping problem is one of the core problems in financial markets, with broad applications such as pricing American and Bermudan options. The deep BSDE method [Han, Jentzen and E, PNAS, 115(34):8505-8510, 2018] has shown great…

Probability · Mathematics 2023-08-28 Chengfan Gao , Siping Gao , Ruimeng Hu , Zimu Zhu

In recent years, model-agnostic meta-learning (MAML) has become a popular research area. However, the stochastic optimization of MAML is still underdeveloped. Existing MAML algorithms rely on the ``episode'' idea by sampling a few tasks and…

Machine Learning · Computer Science 2023-04-26 Bokun Wang , Zhuoning Yuan , Yiming Ying , Tianbao Yang

In this paper, our goal is solving backward doubly stochastic differential equation (BDSDE for short) under weak assumptions on the data. The first part of the paper is devoted to the development of some new technical aspects of stochastic…

Probability · Mathematics 2009-07-14 Auguste Aman

We propose some numerical schemes for forward-backward stochastic differential equations (FBSDEs) based on a new fundamental concept of transposition solutions. These schemes exploit time-splitting methods for the variation of constants…

Numerical Analysis · Mathematics 2018-05-01 Kazufumi Ito , Yufei Zhang , Jun Zou

In this work, we concern with the high order numerical methods for coupled forward-backward stochastic differential equations (FBSDEs). Based on the FBSDEs theory, we derive two reference ordinary differential equations (ODEs) from the…

Numerical Analysis · Mathematics 2014-03-27 Weidong Zhao , Yu Fu , Tao Zhou

In this paper, we propose a deep learning based numerical scheme for strongly coupled FBSDEs, stemming from stochastic control. It is a modification of the deep BSDE method in which the initial value to the backward equation is not a free…

Optimization and Control · Mathematics 2023-02-10 Kristoffer Andersson , Adam Andersson , Cornelis W. Oosterlee

In this paper, an analytic approximation method for highly nonlinear equations, namely the homotopy analysis method (HAM), is employed to solve some backward stochastic differential equations (BSDEs) and forward-backward stochastic…

Numerical Analysis · Mathematics 2018-01-25 Xiaoxu Zhong , Shijun Liao

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