Mean-Variance Hedging and Forward-Backward Stochastic Differential Filtering Equations

<table>The relationship among <svg height="13.425" id="M303" style="vertical-align:-2.29482pt" version="1.1" viewbox="0 0 7.6750002 13.425" width="7.6750002" xmlns="http://www.w3.org/2000/svg">
<g transform="matrix(1.25,0,0,-1.25,0,13.425)">
<g transform="translate(72,-61.26)">
<text transform="matrix(1,0,0,-1,-71.95,63.6)">
<tspan style="font-size: 12.50px; " x="0" y="0">𝜉</tspan>
</text>
</g>
</g>
</svg>, <svg height="11.075" id="M304" style="vertical-align:-3.25793pt" version="1.1" viewbox="0 0 14.8125 11.075" width="14.8125" xmlns="http://www.w3.org/2000/svg">
<g transform="matrix(1.25,0,0,-1.25,0,11.075)">
<g transform="translate(72,-63.14)">
<text transform="matrix(1,0,0,-1,-71.95,66.44)">
<tspan style="font-size: 12.50px; " x="0" y="0">𝑥</tspan>
</text>
<text transform="matrix(1,0,0,-1,-65.07,63.31)">
<tspan style="font-size: 8.75px; " x="0" y="0">0</tspan>
</text>
</g>
</g>
</svg> and <svg height="10.475" id="M305" style="vertical-align:-0.0pt" version="1.1" viewbox="0 0 24.4375 10.475" width="24.4375" xmlns="http://www.w3.org/2000/svg">
<g transform="matrix(1.25,0,0,-1.25,0,10.475)">
<g transform="translate(72,-63.62)">
<text transform="matrix(1,0,0,-1,-71.95,63.67)">
<tspan style="font-size: 12.50px; " x="0" y="0">R</tspan>
<tspan style="font-size: 12.50px; " x="8.3395014" y="0">M</tspan>
</text>
</g>
</g>
</svg>.</table>

Abstract and Applied Analysis

fig1

Figure 1

Figure 1: Mean-Variance Hedging and Forward-Backward Stochastic Differential Filtering Equations 