Special Session 160: Recent progress on stochastic analysis and stochastic control with applications

Fast-Slow Coupled Forward-Backward Stochastic Differential Equations
Fuke Wu
Huazhong University of Science and Technology
Peoples Rep of China
Co-Author(s):    Yihao Sheng, George Yin
Abstract:
This work focuses on fast-slow coupled forward-backward stochastic differential equations (FBSDEs). Firstly, the well-posedness of such systems is established and some necessary estimates are provided. Subsequently, the averaging principle with strong convergence for both forward and backward components is established by using Khasminskii`s time discretization technique. Finally, this averaging principle is applied to examine the singularly perturbed linear-quadratic stochastic control problem.