Explicit High Order One-Step Methods for Decoupled Forward Backward Stochastic Differential Equations

Explicit High Order One-Step Methods for Decoupled Forward Backward Stochastic Differential Equations

Year:    2021

Author:    Quan Zhou, Yabing Sun

Advances in Applied Mathematics and Mechanics, Vol. 13 (2021), Iss. 6 : pp. 1293–1317

Abstract

By using the Feynman-Kac formula and combining with Itô-Taylor expansion and finite difference approximation, we first develop an explicit third order one-step method for solving decoupled forward backward stochastic differential equations. Then based on the third order one, an explicit fourth order method is further proposed. Several numerical tests are also presented to illustrate the stability and high order accuracy of the proposed methods.

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Journal Article Details

Publisher Name:    Global Science Press

Language:    English

DOI:    https://doi.org/10.4208/aamm.OA-2020-0133

Advances in Applied Mathematics and Mechanics, Vol. 13 (2021), Iss. 6 : pp. 1293–1317

Published online:    2021-01

AMS Subject Headings:    Global Science Press

Copyright:    COPYRIGHT: © Global Science Press

Pages:    25

Keywords:    Decoupled forward backward stochastic differential equations Itô-Taylor expansion finite difference approximation explicit one-step method high order convergence.

Author Details

Quan Zhou

Yabing Sun

  1. High order one-step methods for backward stochastic differential equations via Itô-Taylor expansion

    Zhou, Quan

    Sun, Yabing

    Discrete and Continuous Dynamical Systems - B, Vol. 27 (2022), Iss. 8 P.4387

    https://doi.org/10.3934/dcdsb.2021233 [Citations: 2]