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In this paper we develop a representation formula of Clark-Ocone type for any integrable Poisson functionals, which extends the Poisson imbedding for point processes. This representation formula differs from the classical Clark-Ocone…

Probability · Mathematics 2024-04-12 Caroline Hillairet , Thomas Peyrat , Anthony Réveillac

In this paper we first prove a Clark--Ocone formula for any bounded measurable functional on Poisson space. Then using this formula, under some conditions on the intensity measure of Poisson random measure, we prove a variational…

Probability · Mathematics 2009-06-10 Xicheng Zhang

We consider a Poisson process $\eta$ on an arbitrary measurable space with an arbitrary sigma-finite intensity measure. We establish an explicit Fock space representation of square integrable functions of $\eta$. As a consequence we…

Probability · Mathematics 2009-09-18 Guenter Last , Mathew D. Penrose

Let $(W,H,\mu)$ be the classical Wiener space on $\R^d$. Assume that $X=(X_t)$ is a diffusion process satisfying the stochastic differential equation $dX_t=\sigma(t,X)dB_t+b(t,X)dt$, where $\sigma:[0,1]\times C([0,1],\R^n)\to \R^n\otimes…

Probability · Mathematics 2019-01-09 Ali Süleyman Üstünel

We construct a pathwise calculus for functionals of integer-valued measures and use it to derive an martingale representation formula with respect to a large class of integer-valued random measures. Using these results, we extend the…

Probability · Mathematics 2020-02-28 Pierre M. Blacque-Florentin , Rama Cont

In the paper, a mean-square minimization problem under terminal wealth constraint with partial observations is studied. The problem is naturally connected to the mean-variance hedging problem under incomplete information. A new approach to…

Mathematical Finance · Quantitative Finance 2017-04-24 Vitalii Makogin , Alexander Melnikov , Yuliya Mishura

The Yamada-Watanabe theory provides a robust framework for understanding stochastic equations driven by Wiener processes. Despite its comprehensive treatment in the literature, the applicability of the theory to SPDEs driven by Poisson…

Probability · Mathematics 2025-01-07 Kistosil Fahim , Erika Hausenblas , Kenneth H. Karlsen

We show that all local martingales with respect to the initially enlarged natural filtration of a vector of multivariate point processes can be weakly represented up to the minimum among the explosion times of the components. We also prove…

Probability · Mathematics 2021-07-12 Antonella Calzolari , Barbara Torti

In an M-type 2 Banach space, firstly we explore some properties of the set-valued stochastic integral associated with the stationary Poisson point process. By using the Hahn decomposition theorem and bounded linear functional, we obtain the…

Probability · Mathematics 2022-01-10 Jinping Zhang , Itaru Mitoma , Yoshiaki Okazaki

We consider a semimartingale market model when the underlying diffusion has a singular volatility matrix and compute the hedging portfolio for a given payoff function. Recently, the representation problem for such degenerate diffusions with…

Probability · Mathematics 2021-03-19 Mine Caglar , Ihsan Demirel , Ali Suleyman Ustunel

Let $\tilde{N}\_{t}$ be a standard compensated Poisson process on $[0,1]$. We prove a new characterization of anticipating integrals of the Skorohod type with respect to $\tilde{N}$, and use it to obtain several counterparts to well…

Probability · Mathematics 2007-05-23 Giovanni Peccati , Ciprian A. Tudor

We provide a suitable framework for the concept of finite quadratic variation for processes with values in a separable Banach space $B$ using the language of stochastic calculus via regularizations, introduced in the case $B= \R$ by the…

Probability · Mathematics 2010-10-27 Cristina Di Girolami , Francesco Russo

In this paper we explore the fundamentals of the Martingale Representation Theorem (MRT) and a closely related result, the Clark-Ocone formula. We also investigate how far these theorems can be taken, notably beyond the regular Sobolev…

Probability · Mathematics 2013-06-25 Deborah Schneider-Luftman

We discuss the equivalence of definitions for conditional Poisson processes, Cox processes, and stochastic intensities of point processes on the real line. We show that Watanabe's characterisation of conditional Poisson processes in terms…

Probability · Mathematics 2026-01-06 Dirk Becherer , Thomas Bernhardt , Pavel Gapeev

In this paper, we will establish a discrete-time version of Clark(-Ocone-Haussmann) formula, which can be seen as an asymptotic expansion in a weak sense. The formula is applied to the estimation of the error caused by the martingale…

Probability · Mathematics 2013-09-02 Jirô Akahori , Takafumi Amaba , Kaori Okuma

A simple pseudo-Hamiltonian formulation is proposed for the linear inhomogeneous systems of ODEs. In contrast to the usual Hamiltonian mechanics, our approach is based on the use of non-stationary Poisson brackets, i.e. corresponding…

Quantum Physics · Physics 2009-11-11 V. G. Kupriyanov , S. L. Lyakhovich , A. A. Sharapov

We prove It{\^o}'s formula for the flow of measures associated with a jump process defined by a drift, an integral with respect to a Poisson random measure and with respect to the associated compensated Poisson random measure. We work in…

Probability · Mathematics 2022-11-30 Thomas Cavallazzi

We introduce and study a multiparameter Poisson process (MPP). In a particular case, it is observed that the MPP has a unique representation. Its subordination with the multivariate subordinator and inverse subordinator are studied in…

Probability · Mathematics 2025-01-17 P. Vishwakarma , K. K. Kataria

An explicit martingale representation for random variables described as a functional of a Levy process will be given. The Clark-Ocone theorem shows that integrands appeared in a martingale representation are given by conditional…

Mathematical Finance · Quantitative Finance 2019-06-18 Takuji Arai , Ryoichi Suzuki

We prove new upper and lower bounds for Banach space-valued stochastic integrals with respect to a compensated Poisson random measure. Our estimates apply to Banach spaces with non-trivial martingale (co)type and extend various results in…

Probability · Mathematics 2013-07-31 Sjoerd Dirksen , Jan Maas , Jan van Neerven
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