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Related papers: A Differentiation Theory for It\^o's Calculus

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Following the approach and the terminology introduced in [A. Deya and R. Schott, On the rough paths approach to non-commutative stochastic calculus, J. Funct. Anal., 2013], we construct a product L{\'e}vy area above the $q$-Brownian motion…

Probability · Mathematics 2020-12-09 Aurélien Deya , René Schott

In this paper we introduce the notion of fractional martingale as the fractional derivative of order $\alpha$ of a continuous local martingale, where $\alpha\in(-{1/2},{1/2})$, and we show that it has a nonzero finite variation of order…

Probability · Mathematics 2009-12-09 Yaozhong Hu , David Nualart , Jian Song

This paper provides a large deviation principle for Non-Markovian, Brownian motion driven stochastic differential equations with random coefficients. Similar to Gao and Liu \cite{GL}, this extends the corresponding results collected in…

Probability · Mathematics 2014-07-22 Jin Ma , Zhenjie Ren , Nizar Touzi , Jianfeng Zhang

This paper first summarizes the foundations of stochastic calculus via regularization and constructs through this procedure It\^o and Stratonovich integrals. In the second part, a survey and new results are presented in relation with finite…

Probability · Mathematics 2007-05-23 Francesco Russo , Pierre Vallois

Extending It\^o's formula to non-smooth functions is important both in theory and applications. One of the fairly general extensions of the formula, known as Meyer-It\^o, applies to one dimensional semimartingales and convex functions.…

Mathematical Finance · Quantitative Finance 2015-07-02 Ramin Okhrati , Uwe Schmock

Combining fractional calculus and the Rough Path Theory we study the existence and uniqueness of mild solutions to evolutions equations driven by a H\"older continuous function with H\"older exponent in $(1/3,1/2)$. Our stochastic integral…

Analysis of PDEs · Mathematics 2013-05-06 María J. Garrido-Atienza , Kening Lu , Björn Schmalfuss

In this paper, we study rough path properties of stochastic integrals of It\^{o}'s type and Stratonovich's type with respect to $G$-Brownian motion. The roughness of $G$-Brownian Motion is estimated and then the pathwise Norris lemma in…

Probability · Mathematics 2016-08-24 Shige Peng , Huilin Zhang

The coefficients of the stochastic differential equations with Markovian switching (SDEwMS) additionally depend on a Markov chain and there is no notion of differentiating such functions with respect to the Markov chain. In particular, this…

Probability · Mathematics 2022-11-22 Tejinder Kumar , Chaman Kumar

The It\^o formula, also known as the change-of-variables formula, is a cornerstone of It\^o stochastic calculus. Over time, this formula has been extended to apply to random processes for which classical calculus is insufficient. Since…

Probability · Mathematics 2025-09-30 Nannan Li , Xing Gao

In this article we establish a new formula for the difference of a test function of the solution of a stochastic differential equation and of the test function of an It\^o process. The introduced formula essentially generalizes both the…

Probability · Mathematics 2024-06-28 Anselm Hudde , Martin Hutzenthaler , Arnulf Jentzen , Sara Mazzonetto

The aim of this note is to propose a novel numerical scheme for drift-less one dimensional stochastic differential equations of It\^o's type driven by standard Brownian motion. Our approximation method is equivalent to the well known…

Probability · Mathematics 2024-07-24 Alberto Lanconelli , Berk Tan Perçin

We establish an It\^o-type formula for finite $p$-variation paths with jumps for arbitrary $p\geq 1$. The formula is stated in a fully pathwise form and separates the reduced rough integral from explicit left- and right-jump correction…

Probability · Mathematics 2026-05-01 Nannan Li , Xing Gao

We consider a Markov process $X$ associated to a nonnecessarily symmetric Dirichlet form $\mathcal{E}$. We define a stochastic integral with respect to a class of additive functionals of zero quadratic variation and then we obtain an…

Probability · Mathematics 2013-12-18 Alexander Walsh

We present a detailed analysis of non-degenerate time-homogeneous It\^o-stochastic differential equations with low local regularity assumptions on the coefficients. In particular the drift coefficient may only satisfy a local integrability…

Probability · Mathematics 2022-09-16 Haesung Lee , Wilhelm Stannat , Gerald Trutnau

A theory of integration for anticommuting paths is described. This is combined with standard It\^o calculus to give a geometric theory of Brownian paths on curved supermanifolds. (Invited lecture given at meeting on `Espaces de Lacets',…

High Energy Physics - Theory · Physics 2007-05-23 Alice Rogers

The main tool for stochastic calculus with respect to a multidimensional process $B$ with small H\"older regularity index is rough path theory. Once $B$ has been lifted to a rough path, a stochastic calculus -- as well as solutions to…

Probability · Mathematics 2009-06-09 Jeremie Unterberger

In the development of stochastic integration and the theory of semimartingales, Markov processes have been a constant source of inspiration. Despite this historical interweaving, it turned out that semimartingales should be considered the…

Probability · Mathematics 2022-11-29 Sebastian Rickelhoff , Alexander Schnurr

Differential operators usually result in derivatives expressed as a ratio of differentials. For all but the simplest derivatives, these ratios are typically not algebraically manipulable, but must be held together as a unit in order to…

General Mathematics · Mathematics 2022-10-18 Maria Isabelle Fite , Jonathan Bartlett

We demonstrate that backward stochastic differential equations (BSDE) may be reformulated as ordinary functional differential equations on certain path spaces. In this framework, neither It\^{o}'s integrals nor martingale representation…

Probability · Mathematics 2012-11-20 Gechun Liang , Terry Lyons , Zhongmin Qian

Dupire's functional It\^o calculus provides an alternative approach to the classical Malliavin calculus for the computation of sensitivities, also called Greeks, of path-dependent derivatives prices. In this paper, we introduce a measure of…

Computational Finance · Quantitative Finance 2018-06-20 Samy Jazaerli , Yuri F. Saporito