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arXiv 2011-09-27 DOI 10.1214/12-AOP788 0 views

On viscosity solutions of path dependent PDEs

Ekren, Ibrahim · Keller, Christian · Touzi, Nizar · Zhang, Jianfeng

Original · EN

In this paper we propose a notion of viscosity solutions for path dependent semi-linear parabolic PDEs. This can also be viewed as viscosity solutions of non-Markovian backward SDEs, and thus extends the well-known nonlinear Feynman-Kac formula to non-Markovian case. We shall prove the existence, uniqueness, stability and comparison principle for the viscosity solutions. The key ingredient of our approach is a functional Itô calculus recently introduced by Dupire [Functional Itô calculus (2009) Preprint].

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