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Adapted time steps explicit scheme for monotone BSDEs

We study the numerical strong stability of explicit schemes for the numerical approximation of the solution to a BSDE where the driver has polynomial growth in the primary variable and satisfies a monotone decreasing condition, and we introduce an explicit scheme with adapted time-steps that guarantee numerical strong stability. We then prove the convergence of this scheme and illustrate it with numerical simulations.

preprint2016arXivOpen access
Arnaud Lionnet
math.NA
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Arnaud Lionnet

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