An Explicit Second Order Scheme for Decoupled Anticipated Forward Backward Stochastic Differential Equations

An Explicit Second Order Scheme for Decoupled Anticipated Forward Backward Stochastic Differential Equations

Year:    2020

Author:    Yabing Sun, Weidong Zhao

East Asian Journal on Applied Mathematics, Vol. 10 (2020), Iss. 3 : pp. 566–593

Abstract

The Feynman-Kac formula and the Lagrange interpolation method are used in the construction of an explicit second order scheme for decoupled anticipated forward backward stochastic differential equations. The stability of the scheme is rigorously proved and error estimates are established. The scheme has the second order accuracy when weak order 2.0 Taylor scheme is employed to solve stochastic differential equations. Numerical tests confirm the theoretical findings.

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Journal Article Details

Publisher Name:    Global Science Press

Language:    English

DOI:    https://doi.org/10.4208/eajam.271119.200220

East Asian Journal on Applied Mathematics, Vol. 10 (2020), Iss. 3 : pp. 566–593

Published online:    2020-01

AMS Subject Headings:   

Copyright:    COPYRIGHT: © Global Science Press

Pages:    28

Keywords:    Anticipated forward backward stochastic differential equations explicit scheme error estimate second order convergence.

Author Details

Yabing Sun

Weidong Zhao

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