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Non-Markovian Fully Coupled Forward-Backward Stochastic Systems and Classical Solutions of Path-dependent PDEs

This paper explores the relationship between non-Markovian fully coupled forward-backward stochastic systems and path-dependent PDEs. The definition of classical solution for the path-dependent PDE is given within the framework of functional Itô calculus. Under mild hypotheses, we prove that the forward-backward stochastic system provides the unique classical solution to the path-dependent PDE.

preprint2012arXivOpen access
Shaolin JiShuzhen Yang
math.APmath.PR
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Shaolin JiShuzhen Yang

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