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A general result on the method of randomized stopping is proved. It is applied to optimal stopping of controlled diffusion processes with unbounded coefficients to reduce it to an optimal control problem without stopping. This is motivated…

Probability · Mathematics 2008-05-15 Istvan Gyongy , David Siska

Given a stochastic state process $(X_t)_t$ and a real-valued submartingale cost process $(S_t)_t$, we characterize optimal stopping times $\tau$ that minimize the expectation of $S_\tau$ while realizing given initial and target…

Probability · Mathematics 2020-12-24 Nassif Ghoussoub , Young-Heon Kim , Aaron Zeff Palmer

The main purpose of this chapter is to present some theoretical aspects of parametric estimation of L\'evy processes based on high-frequency sampling, with a focus on infinite activity pure-jump models. Asymptotics for several classes of…

Statistics Theory · Mathematics 2014-09-02 Hiroki Masuda

In this article we study and classify optimal martingales in the dual formulation of optimal stopping problems. In this respect we distinguish between weakly optimal and surely optimal martingales. It is shown that the family of weakly…

Probability · Mathematics 2021-02-03 Denis Belomestny , John Schoenmakers

Consider a set of discounted optimal stopping problems for a one-parameter family of objective functions and a fixed diffusion process, started at a fixed point. A standard problem in stochastic control/optimal stopping is to solve for the…

Probability · Mathematics 2010-05-04 David Hobson , Martin Klimmek

The problem of estimating the L\'evy density of a partially observed multidimensional affine process from low-frequency and mixed-frequency data is considered. The estimation methodology is based on the log-affine representation of the…

Methodology · Statistics 2015-03-13 Denis Belomestny

We investigate optimal stopping problems for systems driven by the Brownian sheet. Our analysis is divided into two parts. In the first part we derive explicit solutions to two optimal stopping problems for the exponentially discounted…

Probability · Mathematics 2026-03-16 Nacira Agram , Bernt Oksendal , Frank Proske , Olena Tymoshenko

In this paper, we solve the existence problem of optimal stopping problem under some kind of nonlinear expectation named g_\Gamma expectation which was recently introduced in Peng, S.G. and Xu, M.Y. [8]. Our method based on our preceding…

Probability · Mathematics 2011-05-12 Helin Wu

We consider the problem of optimally stopping a Brownian bridge with an unknown pinning time so as to maximise the value of the process upon stopping. Adopting a Bayesian approach, we assume the stopper has a general continuous prior and is…

Probability · Mathematics 2020-03-17 Kristoffer Glover

We employ the viscosity solution technique to analyze optimal stopping problems with regime switching. Specifically, we obtain the viscosity property of value functions, the uniqueness of viscosity solutions, the regularity of value…

Optimization and Control · Mathematics 2015-12-25 Yong-Chao Zhang , Na Zhang

We consider the representation of the value of a class of optimal stopping problems of linear diffusions in a linearized form as an expected supremum of a known function. We establish an explicit integral representation of this representing…

Probability · Mathematics 2017-03-16 Luis H. R. Alvarez E. , Pekka Matomäki

We analyze the Snell envelope with path dependent multiplicative optimality criteria. Especially for this case, we propose a variation of the Snell envelope backward recursion which allows to extend some classical approxima- tion schemes to…

Numerical Analysis · Mathematics 2010-08-19 Pierre Del Moral , Peng Hu , Nadia Oudjane

We study an optimal stopping problem under non-exponential discounting, where the state process is a multi-dimensional continuous strong Markov process. The discount function is taken to be log sub-additive, capturing decreasing impatience…

Mathematical Finance · Quantitative Finance 2021-07-14 Yu-Jui Huang , Zhenhua Wang

Using the spectral measure $\mu_\mathbb{S}$ of the stopping time $\mathbb{S},$ we define the stopping element $X_\mathbb{S}$ as a Daniell integral $\int X_t\,d\mu_\mathbb{S}$ for an adapted stochastic process $(X_t)_{t\in J}$ that is a…

Functional Analysis · Mathematics 2020-07-13 Jacobus J. Grobler , Christopher M. Schwanke

We analyze an optimal stopping problem with random maturity under a nonlinear expectation with respect to a weakly compact set of mutually singular probabilities $\mathcal{P}$. The maturity is specified as the hitting time to level $0$ of…

Probability · Mathematics 2016-07-08 Erhan Bayraktar , Song Yao

In this paper we present a new verification theorem for optimal stopping problems for Hunt processes. The approach is based on the Fukushima-Dynkin formula, and its advantage is that it allows us to verify that a given function is the value…

Optimization and Control · Mathematics 2019-09-04 Achref Bachouch , Olfa Draouil , Bernt Øksendal

Under the hypothesis of convergence in probability of a sequence of c\`adl\`ag processes $(X^n)_n$ to a c\`adl\`ag process $X$, we are interested in the convergence of corresponding values in optimal stopping. We give results under…

Probability · Mathematics 2007-05-23 Sandrine Toldo

First, we give a closed-form formula for first passage time of a reflected Brownian motion with drift. This modifies a formula by Perry et al (2004). Second, we show that the maximum before a fixed drawdown is exponentially distributed for…

Probability · Mathematics 2021-01-12 Eberhard Mayerhofer

We consider a class of L\'evy-type processes on which spectral analysis technics can be made to produce optimal results, in particular for the decay rate of their survival probability and for the spectral gap of their ground state…

Probability · Mathematics 2023-06-30 Grégoire Véchambre

We consider the L\'evy model of the perpetual American call and put options with a negative discount rate under Poisson observations. Similar to the continuous observation case as in De Donno et al. [24], the stopping region that…

Optimization and Control · Mathematics 2020-04-08 Zbigniew Palmowski , José Luis Pérez , Kazutoshi Yamazaki