English

A Proof of Lehoczky's Theorem on Drawdowns

Probability 2022-09-13 v1

Abstract

We give a proof of Lehoczky's drawdown formula for one-dimensional diffusion processes, using the Poisson structure of the excursions of the diffusion below its running maximum.

Keywords

Cite

@article{arxiv.2209.04695,
  title  = {A Proof of Lehoczky's Theorem on Drawdowns},
  author = {P. J. Fitzsimmons},
  journal= {arXiv preprint arXiv:2209.04695},
  year   = {2022}
}