Convergence of Recent Multistep Schemes for a Forward-Backward Stochastic Differential Equation

Convergence of Recent Multistep Schemes for a Forward-Backward Stochastic Differential Equation

Year:    2015

East Asian Journal on Applied Mathematics, Vol. 5 (2015), Iss. 4 : pp. 387–404

Abstract

Convergence analysis is presented for recently proposed multistep schemes, when applied to a special type of forward-backward stochastic differential equations (FBSDEs) that arises in finance and stochastic control. The corresponding $k$-step scheme admits a $k$-order convergence rate in time, when the exact solution of the forward stochastic differential equation (SDE) is given. Our analysis assumes that the terminal conditions and the FBSDE coefficients are sufficiently regular.

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Journal Article Details

Publisher Name:    Global Science Press

Language:    English

DOI:    https://doi.org/10.4208/eajam.280515.211015a

East Asian Journal on Applied Mathematics, Vol. 5 (2015), Iss. 4 : pp. 387–404

Published online:    2015-01

AMS Subject Headings:   

Copyright:    COPYRIGHT: © Global Science Press

Pages:    18

Keywords:    Convergence analysis multistep schemes forward-backward stochastic differential equations.

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