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Related papers: High order weak approximation schemes for L\'evy-d…

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We develop a computational method for expected functionals of the drawdown and its duration in exponential L\'evy models. It is based on a novel simulation algorithm for the joint law of the state, supremum and time the supremum is attained…

Probability · Mathematics 2023-11-20 Jorge González Cázares , Aleksandar Mijatović

The paper estimates the rate of convergence of the weak Euler approximation for the solutions of SDEs with Hoelder continuous coefficients driven by point and martingale measures. The equation considered has a non-degenerate main part whose…

Probability · Mathematics 2010-11-23 R. Mikulevicius , C. Zhang

L\'{e}vy processes with completely monotone jumps appear frequently in various applications of probability. For example, all popular stock price models based on L\'{e}vy processes (such as the Variance Gamma, CGMY/KoBoL and Normal Inverse…

Probability · Mathematics 2016-01-08 Daniel Hackmann , Alexey Kuznetsov

In this paper, we get some convergence rates in total variation distance in approximating discretized paths of L{\'e}vy driven stochastic differential equations, assuming that the driving process is locally stable. The particular case of…

Probability · Mathematics 2022-03-08 Emmanuelle Clément

In this note, under a weak monotonicity and a weak coercivity, we address strong well-posedness of McKean-Vlasov stochastic differential equations (SDEs) driven by L\'{e}vy jump processes, where the coefficients are Lipschitz continuous…

Probability · Mathematics 2024-12-03 Jianhai Bao , Yao Liu , Jian Wang

Consider the following stochastic differential equation (SDE) $$dX_t = b(t,X_{t-}) \, dt+ dL_t, \quad X_0 = x,$$ driven by a $d$-dimensional L\'evy process $(L_t)_{t \geq 0}$. We establish conditions on the L\'evy process and the drift…

Probability · Mathematics 2020-05-01 Franziska Kühn , René L. Schilling

In this article, we are interested in the strong well-posedness together with the numerical approximation of some one-dimensional stochastic differential equations with a non-linear drift, in the sense of McKean-Vlasov, driven by a…

Probability · Mathematics 2020-01-22 Noufel Frikha , Libo Li

We address the weak numerical solution of stochastic differential equations driven by independent Brownian motions (SDEs for short). This paper develops a new methodology to design adaptive strategies for determining automatically the…

Probability · Mathematics 2023-02-10 Carlos M. Mora , Juan Carlos Jimenez , Monica Selva

In a high-frequency context, we investigate the efficient estimation of scaling and jump activity parameters for a stochastic differential equation driven by a L{\'e}vy process with both diffusion component and pure-jump component. We first…

Probability · Mathematics 2025-09-08 Elise Bayraktar , Emmanuelle Clément

We consider the simulation of a system of decoupled forward-backward stochastic differential equations (FBSDEs) driven by a pure jump L\'evy process $L$ and an independent Brownian motion $B$. We allow the L\'evy process $L$ to have an…

Probability · Mathematics 2023-06-13 Till Massing

By using absolutely continuous lower bounds of the L\'evy measure, explicit gradient estimates are derived for the semigroup of the corresponding L\'evy process with a linear drift. A derivative formula is presented for the conditional…

Probability · Mathematics 2011-03-16 Feng-Yu Wang

In this paper we address the problem of rare-event simulation for heavy-tailed L\'evy processes with infinite activities. We propose a strongly efficient importance sampling algorithm that builds upon the sample path large deviations for…

Probability · Mathematics 2020-07-17 Xingyu Wang , Chang-Han Rhee

We consider the problem of obtaining effective representations for the solutions of linear, vector-valued stochastic differential equations (SDEs) driven by non-Gaussian pure-jump L\'evy processes, and we show how such representations lead…

Probability · Mathematics 2023-11-09 Marcos Tapia Costa , Ioannis Kontoyiannis , Simon Godsill

In this paper, we study the nonparametric estimation of the density $f_\Delta$ of an increment of a L\'evy process $X$ based on $n$ observations with a sampling rate $\Delta$. The class of L\'evy processes considered is broad, including…

Statistics Theory · Mathematics 2024-11-04 Céline Duval , Taher Jalal , Ester Mariucci

This paper is concerned with nonparametric estimation of the L\'evy density of a pure jump L\'evy process. The sample path is observed at $n$ discrete instants with fixed sampling interval. We construct a collection of estimators obtained…

Statistics Theory · Mathematics 2010-10-01 Fabienne Comte , Valentine Genon-Catalot

In this paper we deal with pointwise approximation of solutions of stochastic differential equations (SDEs) driven by infinite dimensional Wiener process with additional jumps generated by Poisson random measure. The further investigations…

Probability · Mathematics 2022-05-04 Paweł Przybyłowicz , Michał Sobieraj , Łukasz Stȩpień

We prove the well-posedness of solutions to McKean-Vlasov stochastic differential equations driven by L\'evy noise under mild assumptions where, in particular, the L\'evy measure is not required to be finite. The drift, diffusion and jump…

Probability · Mathematics 2020-10-20 Neelima , Sani Biswas , Chaman Kumar , Gonçalo dos Reis , Christoph Reisinger

The main goal of the work is to study the stochastic averaging principle for two time-scales stochastic evolution equations driven by L\'evy process. The solution of reduced equation with modified coefficient is derived to approximate the…

Dynamical Systems · Mathematics 2021-11-04 Bin Pei , Yong Xu

We consider option hedging in a model where the underlying follows an exponential L\'evy process. We derive approximations to the variance-optimal and to some suboptimal strategies as well as to their mean squared hedging errors. The…

Computational Finance · Quantitative Finance 2017-07-25 Aleš Černý , Stephan Denkl , Jan Kallsen

We study the convergence of a generic tamed Euler-Maruyama (EM) scheme for the kinetic type stochastic differential equations (SDEs) (also known as second order SDEs) with singular coefficients in both weak and strong probabilistic senses.…

Probability · Mathematics 2024-09-10 Zimo Hao , Khoa Lê , Chengcheng Ling