Robust optimization and quadratic BSDEs

Series
Mathematical Finance/Financial Engineering Seminar
Time
Wednesday, November 28, 2012 - 3:00pm for 1 hour (actually 50 minutes)
Location
Skiles 005
Speaker
Daniel Hernandez – CIMAT, Mexico
Organizer
Christian Houdré

Please Note: Hosts: Christian Houdre and Liang Peng

The relation between robust utility maximization problems and quadratic backward stochastic differential equations will be explored in this talk. Motivated by the solution of the dual formulation of the robust hedging problem for semi-martingales, when the model adopted is a diffusion it is possible to describe more completely the solution using the dynamic programming intuition, as well as some results of BSDEs.