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In this paper we introduce a new type of norms for semimartingales, under both linear and nonlinear expectations. Our norm is defined in the spirit of quasimartingales, and it characterizes square integrable semimartingales. This work is…

Probability · Mathematics 2012-11-01 Triet Pham , Jianfeng Zhang

In this paper, we extend the results of Elliott and Yang \cite{elliott3} and discuss the control of a stochastic process for which the driving noise is provided by a martingale associated with a semi-Markov Chain. An existence and a…

Probability · Mathematics 2025-12-23 Robert J. Elliott , Zhe Yang

This paper considers the problem of estimating a periodic function in a continuous time regression model with a general square integrable semimartingale noise. A model selection adaptive procedure is proposed. Sharp non-asymptotic oracle…

Statistics Theory · Mathematics 2009-09-18 Victor Konev , Serguei Pergamenchtchikov

We introduce and study the properties of a new family of fractional differential and integral operators which are based directly on an iteration process and therefore satisfy a semigroup property. We also solve some ODEs in this new model…

Classical Analysis and ODEs · Mathematics 2021-05-03 Arran Fernandez , Dumitru Baleanu

In frictionless markets, utility maximization problems are typically solved either by stochastic control or by martingale methods. Beginning with the seminal paper of Davis and Norman [Math. Oper. Res. 15 (1990) 676--713], stochastic…

Computational Finance · Quantitative Finance 2010-10-26 J. Kallsen , J. Muhle-Karbe

We construct a class of nonnegative martingale processes that oscillate indefinitely with high probability. For these processes, we state a uniform rate of the number of oscillations and show that this rate is asymptotically close to the…

Machine Learning · Computer Science 2014-08-18 Jan Leike , Marcus Hutter

We study the dynamics of the exponential utility indifference value process C(B;\alpha) for a contingent claim B in a semimartingale model with a general continuous filtration. We prove that C(B;\alpha) is (the first component of) the…

Probability · Mathematics 2008-12-10 Michael Mania , Martin Schweizer

In the paper we continue the research of Bors\'{i}k and Dobo\v{s} on functions which allow us to introduce a metric to the product of metric spaces. In this paper we extend their scope on broader class of spaces which usually fail to…

Metric Geometry · Mathematics 2021-01-01 Mateusz Lichman , Piotr Nowakowski , Filip Turoboś

This paper contributes to the study of class $(\Sigma^{r})$ as well as the c\`adl\`ag semi-martingales of class $(\Sigma)$, whose finite variational part is c\`adl\`ag instead of continuous. The two above-mentioned classes of stochastic…

Probability · Mathematics 2021-08-30 Fulgence Eyi Obiang , Paule Joyce Mbenangoye , Octave Moutsinga

Let $X^1,\ldots, X^d$ be sigma-martingales on $(\Omega,{\cal F}, P)$. We show that every bounded martingale (with respect to the underlying filtration) admits an integral representation w.r.t. $X^1,\ldots, X^d$ if and only if there is no…

Probability · Mathematics 2015-12-15 Rajeeva L Karandikar , B V Rao

We define a new congruence relation on the set of integers, leading to a group similar to the multiplicative group of integers modulo $n$. It makes use of a symmetry almost omnipresent in modular multiplications and halves the number of…

Number Theory · Mathematics 2016-02-09 Tim Beyne , Gerold Brändli

It has been understood that the "local" existence of the Markowitz' optimal portfolio or the solution to the local-risk minimization problem is guaranteed by some specific mathematical structures on the underlying assets price processes…

Risk Management · Quantitative Finance 2018-12-31 Tahir Choulli , Jun Deng

We develop a non-anticipating calculus of variations for functionals on a space of laws of continuous semi-martingales, which extends the classical one. We extend Hamilton's least action principle and Noether's theorem to this generalized…

Probability · Mathematics 2015-01-22 Ana Bela Cruzeiro , Rémi Lassalle

This paper establishes necessary and sufficient conditions for a bi-amalgamation to inherit the arithmetical property, with applications on the weak global dimension and transfer of the semihereditary property. The new results compare to…

Commutative Algebra · Mathematics 2016-01-29 S. Kabbaj , N. Mahdou , M. A. S. Moutui

Under proportional transaction costs, a price process is said to have a consistent price system, if there is a semimartingale with an equivalent martingale measure that evolves within the bid-ask spread. We show that a continuous,…

Pricing of Securities · Quantitative Finance 2015-09-16 Christian Bender , Mikko S. Pakkanen , Hasanjan Sayit

When the target variable exhibits a semicontinuous behaviour (i.e. a point mass in a single value and a continuous distribution elsewhere) parametric `two-part regression models' have been extensively used and investigated. In this paper, a…

Methodology · Statistics 2014-08-14 Emanuela Dreassi , Emilia Rocco

We introduce a new basic model for independent and identical distributed sequence on the canonical space $(\mathbb{R}^\mathbb{N},\mathcal{B}(\mathbb{R}^\mathbb{N}))$ via probability kernels with model uncertainty. Thanks to the well-defined…

Probability · Mathematics 2022-03-02 Xinpeng Li

Cover's celebrated theorem states that the long run yield of a properly chosen "universal" portfolio is as good as the long run yield of the best retrospectively chosen constant rebalanced portfolio. The "universality" pertains to the fact…

Mathematical Finance · Quantitative Finance 2016-11-30 Christa Cuchiero , Walter Schachermayer , Ting-Kam Leonard Wong

The superiority of stochastic symplectic methods over non-symplectic counterparts has been verified by plenty of numerical experiments, especially in capturing the asymptotic behaviour of the underlying solution process. How can one…

Numerical Analysis · Mathematics 2024-04-24 Chuchu Chen , Xinyu Chen , Tonghe Dang , Jialin Hong

The paper studies problem of continuous time optimal portfolio selection for a incom- plete market diffusion model. It is shown that, under some mild conditions, near optimal strategies for investors with different performance criteria can…

Portfolio Management · Quantitative Finance 2014-04-15 Nikolai Dokuchaev