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A pricing principle is introduced for non-attainable $q$-exponential bounded contingent claims in an incomplete Brownian motion market setting. The buyer evaluates the contingent claim under the ``distorted Radon-Nikodym derivative'' and…

Mathematical Finance · Quantitative Finance 2022-10-11 Dejian Tian

We propose a constructive framework for the super-hedging problem of a European contingent claim under proportional transaction costs in discrete time. Our main contribution is an explicit recursive scheme that computes both the…

Mathematical Finance · Quantitative Finance 2025-11-06 Emmanuel Lepinette , Amal Omrani

In that paper, we provide a new characterization of the solutions of specific reflected backward stochastic differential equations (or RBSDEs) whose driver $g$ is convex and has quadratic growth in its second variable: this is done by…

Pricing of Securities · Quantitative Finance 2008-12-02 Marie-Amelie Morlais

We introduce a new non-linear optimal transport formulation for a pair of probability measures on $\mathbb{R}^d$ sharing a common barycentre, in which admissible transference plans satisfy two martingale-type constraints. This bi-martingale…

Probability · Mathematics 2025-11-03 Karol Bołbotowski

We present an application of Hodge theory towards the study of irreducible unitary representations of reductive Lie groups. We describe a conjecture about such representations and discuss some progress towards its proof.

Representation Theory · Mathematics 2012-06-26 Wilfried Schmid , Kari Vilonen

The family of log-concave density functions contains various kinds of common probability distributions. Due to the shape restriction, it is possible to find the nonparametric estimate of the density, for example, the nonparametric maximum…

Methodology · Statistics 2024-01-29 Fuheng Cui , Stephen G. Walker

In this paper, we consider the stochastic optimal control problems under model risk caused by uncertain volatilities. To have a mathematical consistent framework we use the notion of G-expectation and its corresponding G-Brwonian motion…

Optimization and Control · Mathematics 2014-04-18 Zhongyang Sun , Xin Zhang , Junyi Guo

This paper proposes a theory of stock market predictability patterns based on a model of heterogeneous beliefs. In a discrete finite time framework, some agents receive news about an asset's fundamental value through a noisy signal. The…

Pricing of Securities · Quantitative Finance 2024-06-13 Jiho Park

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

The subject of this thesis is Galois correspondence for von Neumann algebras and its interplay with non-commutative probability theory. After a brief introduction to representation theory for compact groups, in particular to Peter-Weyl…

Operator Algebras · Mathematics 2008-12-23 Timor Saffary

This paper is concerned with the connection between G-Brownian Motion and analytic functions. We introduce the complex version of sublinear expectation, and then do the stochastic analysis in this framework. Furthermore, the conformal…

Probability · Mathematics 2015-02-11 Huilin Zhang

We introduce a notion of volatility uncertainty in discrete time and define the corresponding analogue of Peng's G-expectation. In the continuous-time limit, the resulting sublinear expectation converges weakly to the G-expectation. This…

Probability · Mathematics 2011-03-04 Yan Dolinsky , Marcel Nutz , H. Mete Soner

In this note we re-examine the analysis of the paper "On the martingale property of stochastic exponentials" by B. Wong and C.C. Heyde, Journal of Applied Probability, 41(3):654-664, 2004. Some counterexamples are presented and alternative…

Probability · Mathematics 2019-07-10 Aleksandar Mijatović , Mikhail Urusov

We prove the Martingale Convergence Theorem by using the work of L. Dubins and I. Monroe about embedding a given discrete-time martingale in the sample paths of a Brownian motion.

Probability · Mathematics 2024-12-20 P. J. Fitzsimmons

In this paper, we study the pricing of contingent claims under G-expectation. In order to accomodate volatility uncertainty, the price of the risky security is supposed to governed by a general linear stochastic differential equation (SDE)…

Probability · Mathematics 2013-03-19 Mingshang Hu , Shaolin Ji

We introduce a novel notion of divergence between continuous martingales; the reciprocal specific relative entropy. First, we motivate this definition from multiple perspectives. Thereafter, we solve the reciprocal specific relative entropy…

Optimization and Control · Mathematics 2026-02-17 Julio Backhoff , Xin Zhang

A discretization scheme for nonnegative diffusion processes is proposed and the convergence of the corresponding sequence of approximate processes is proved using the martingale problem framework. Motivations for this scheme come typically…

Computational Finance · Quantitative Finance 2010-11-16 Chantal Labbé , Bruno Rémillard , Jean-François Renaud

We consider the pricing problem facing a seller of a contingent claim. We assume that this seller has some general level of partial information, and that he is not allowed to sell short in certain assets. This pricing problem, which is our…

Mathematical Finance · Quantitative Finance 2019-02-28 Kristina Rognlien Dahl

In exponential semi-martingale setting for risky asset we estimate the difference of prices of options when initial physical measure $P$ and corresponding martingale measure $Q$ change to $\tilde{P}$ and $\tilde{Q}$ respectively. Then, we…

Probability · Mathematics 2018-03-14 L. Vostrikova

Achieving disentangled representations of information is one of the key goals of deep network based machine learning system. Recently there are more discussions on this issue. In this paper, by comparing the geometric structure of…

Machine Learning · Computer Science 2019-06-26 X. Dong , L. Zhou