Forward Difference Approximations The forward-difference derivative approximations consume less computer time but are usually not as precise as those using central-difference formulas.

For our forward interpolation scheme, we must use both binomial coefficients and forward differences. Forward differences (or backward differences) are finite arithmetic's complement to the derivative ...

Let (Y, Z) denote the solution to a forward-backward stochastic differential equation (FBSDE). If one constructs a random walk B n from the underlying Brownian motion B by Skorokhod embedding, one can ...