Τρίτη 2 Αυγούστου 2016

A BSDE with Delayed Generator Approach to Pricing under Counterparty Risk and Collateralization

We consider a nonlinear pricing problem that takes into account credit risk and funding issues. The aforementioned problem is formulated as a stochastic forward-backward system with delay, both in the forward and in the backward component, whose solution is characterized in terms of viscosity solution to a suitable type of path-dependent PDE.

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