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The challenge to fruitfully merge state-of-the-art techniques from mathematical finance and numerical analysis has inspired researchers to develop fast deterministic option pricing methods. As a result, highly efficient algorithms to…

计算金融 · 定量金融 2015-11-06 Kathrin Glau

The classical Feynman-Kac formula states the connection between linear parabolic partial differential equations (PDEs), like the heat equation, and expectation of stochastic processes driven by Brownian motion. It gives then a method for…

概率论 · 数学 2014-09-03 Huyen Pham

Recent developments on financial markets have revealed the limits of Brownian motion pricing models when they are applied to actual markets. L\'evy processes, that admit jumps over time, have been found more useful for applications. Thus,…

概率论 · 数学 2013-09-16 Rui Sá Pereira , Evelina Shamarova

A complex notion of backward stochastic differential equation (BSDE) is proposed in this paper to give a probabilistic interpretation for linear first order complex partial differential equation (PDE). By the uniqueness and existence of…

概率论 · 数学 2015-05-15 Yuhong Xu

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…

数理金融 · 定量金融 2026-02-11 Kaustav Das , Ivan Guo , Grégoire Loeper

The Feynman-Kac equation governs the distribution of the statistical observable -- functional, having wide applications in almost all disciplines. After overcoming challenges from the time-space coupled nonlocal operator and the possible…

数值分析 · 数学 2020-11-11 Jing Sun , Daxin Nie , Weihua Deng

In this paper, our primary focus lies in the thorough investigation of a specific category of nonlinear fully coupled forward-backward stochastic differential equations involving time delays and advancements with the incorporation of…

最优化与控制 · 数学 2023-10-23 Maozhong Xu , Maoning Tang , Qingxin Meng

We derive a non-linear version of the Feynman-Kac formula for the solutions of the vorticity equation in dimension 2 with space periodic boundary conditions. We prove the existence (global in time) and uniqueness for a stochastic terminal…

概率论 · 数学 2013-04-05 Ana Bela Cruzeiro , Zhongmin M. Qian

In this paper, a class of non-Markovian forward-backward doubly stochastic systems is studied. By using the technique of functional It\^o (or path-dependent) calculus, the relationship between the systems and related path-dependent…

概率论 · 数学 2022-06-14 Yufeng Shi , Jiaqiang Wen , Jie Xiong

Functionals of a stochastic process Y(t) model many physical time-extensive observables, e.g. particle positions, local and occupation times or accumulated mechanical work. When Y(t) is a normal diffusive process, their statistics are…

统计力学 · 物理学 2017-04-05 Andrea Cairoli , Adrian Baule

This paper presents a novel approach to numerically solve stochastic differential games for nonlinear systems. The proposed approach relies on the nonlinear Feynman-Kac theorem that establishes a connection between parabolic deterministic…

最优化与控制 · 数学 2019-06-13 Ziyi Wang , Keuntaek Lee , Marcus A. Pereira , Ioannis Exarchos , Evangelos A. Theodorou

The Feynman-Kac formula provides a way to understand solutions to elliptic partial differential equations in terms of expectations of continuous time Markov processes. This connection allows for the creation of numerical schemes for…

数值分析 · 数学 2021-08-11 Cameron Martin , Hongyuan Zhang , Julia Costacurta , Mihai Nica , Adam R Stinchcombe

In this paper we investigate classical solution of a semi-linear system of backward stochastic integral partial differential equations driven by a Brownian motion and a Poisson point process. By proving an It\^{o}-Wentzell formula for jump…

概率论 · 数学 2010-07-20 Shaokuan Chen , Shanjian Tang

The Feynman-Kac equations are a type of partial differential equations describing the distribution of functionals of diffusive motion. The probability density function (PDF) of Brownian functionals satisfies the Feynman-Kac formula, being a…

计算物理 · 物理学 2015-02-03 Weihua Deng , Minghua Chen , Eli Barkai

We study a class of backward doubly stochastic differential equations (BDSDEs) involving martingales with spatial parameters, and show that they provide probabilistic interpretations (Feynman-Kac formulae) for certain semilinear stochastic…

概率论 · 数学 2017-12-05 Jian Song , Xiaoming Song , Qi Zhang

We propose a new method for the numerical solution of the forward-backward stochastic differential equations (FBSDE) appearing in the Feynman-Kac representation of the value function in stochastic optimal control problems. Using Girsanov's…

最优化与控制 · 数学 2022-10-20 Kelsey P. Hawkins , Ali Pakniyat , Evangelos Theodorou , Panagiotis Tsiotras

Explicit solutions for a class of linear backward stochastic differential equations (BSDE) driven by Gaussian Volterra processes are given. These processes include the multifractional brownian motion and the multifractional…

概率论 · 数学 2019-12-03 Habiba Knani , Marco Dozzi

In the framework of stochastic functional differential equations (SFDE's) and the corresponding calculus developed in the recent years by F. Yan and S. Mohammed, we provide a series of representation formulae for a variety of highly…

概率论 · 数学 2016-02-29 Stefano Belloni

This paper is an attempt to extend the notion of viscosity solution to nonlinear stochastic partial differential integral equations with nonlinear Neumann boundary condition. Using the recently developed theory on generalized backward…

概率论 · 数学 2010-11-16 Auguste Aman , Yong Ren

In this paper, we present a novel Feynman-Kac formula and investigate learning-based methods for approximating general nonlinear time-dependent Schr\"odinger equations which may be high-dimensional. Our formulation integrates both the…

偏微分方程分析 · 数学 2025-06-23 Hang Cheung , Jinniao Qiu , Yang Yang
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