Schwarz Method for Financial Engineering

Schwarz Method for Financial Engineering

Year:    2021

Author:    Guangbao Guo, Weidong Zhao

Journal of Computational Mathematics, Vol. 39 (2021), Iss. 4 : pp. 538–555

Abstract

Schwarz method is put forward to solve second order backward stochastic differential equations (2BSDEs) in this work. We will analyze uniqueness, convergence, stability and optimality of the proposed method. Moreover, several simulation results are presented to demonstrate the effectiveness; several applications of the 2BSDEs are investigated. It is concluded from these results that the proposed the method is powerful to calculate the 2BSDEs listing from the financial engineering.

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Journal Article Details

Publisher Name:    Global Science Press

Language:    English

DOI:    https://doi.org/10.4208/jcm.2003-m2018-0115

Journal of Computational Mathematics, Vol. 39 (2021), Iss. 4 : pp. 538–555

Published online:    2021-01

AMS Subject Headings:   

Copyright:    COPYRIGHT: © Global Science Press

Pages:    18

Keywords:    2BSDE Schwarz method Domain decomposition Viscosity solution Stochastic volatility models.

Author Details

Guangbao Guo

Weidong Zhao