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We show that any stochastic differential equation (SDE) driven by Brownian motion with drift satisfying the Krylov-R\"ockner condition has exactly one solution in an ordinary sense for almost every trajectory of the Brownian motion.…

Probability · Mathematics 2025-07-09 Lukas Anzeletti , Khoa Lê , Chengcheng Ling

We show that a Brownian motion on the quaternionic full flag manifold can be represented as a matrix-valued diffusion obtained in a simple way from a symplectic Brownian motion. By relating its radial dynamics to the Brownian motion on the…

Probability · Mathematics 2025-12-02 Fabrice Baudoin , Teije Kuijper , Jing Wang

We establish a necessary and sufficient condition for averages over complex valued weight functions on R^N to be represented as statistical averages over real, non-negative probability weights on C^N. Using this result, we show that many…

Quantum Physics · Physics 2009-11-07 Don Weingarten

We derive an extremal fractional Gaussian by employing the L\'evy-Khintchine theorem and L\'evian noise. With the fractional Gaussian we then generalize the Black-Scholes-Merton option-pricing formula. We obtain an easily applicable and…

Pricing of Securities · Quantitative Finance 2019-12-04 Alexander Jurisch

The purpose of this paper is to establish a variational representation \log \E [e^{f(B)}] = \sup_h \E [f(B + \int_0^{\cdot} d<B>_s h_s) - 1/2 \int_0^1 h_s \cdot (d<B>_s h_s)] for functionals of the d-dimensional G-Brownian motion B. Here \E…

Probability · Mathematics 2012-12-04 Emi Osuka

We consider two related linear PDE's perturbed by a fractional Brownian motion. We allow the drift to be discontinuous, in which case the corresponding deterministic equation is ill-posed. However, the noise will be shown to have a…

Probability · Mathematics 2018-06-26 Torstein Nilssen

We study a notion of local time for a continuous path, defined as a limit of suitable discrete quantities along a general sequence of partitions of the time interval. Our approach subsumes other existing definitions and agrees with the…

Probability · Mathematics 2017-01-26 Mark Davis , Jan Obłój , Pietro Siorpaes

We consider a financial market where the asset price follows a fractional Brownian motion. We introduce a family of investment strategies, and quantify profit possibilities for both persistent and antipersistant markets.

Statistical Mechanics · Physics 2010-05-04 Ingve Simonsen , Kim Sneppen

The signature is a collection of iterated integrals describing the "shape" of a path. It appears naturally in the Taylor expansions of controlled differential equations and, as a consequence, is arguably the central object within rough path…

Numerical Analysis · Mathematics 2025-10-31 James Foster

In this paper we study the controllability results of impulsive neutral stochastic functional differential equations with infinite delay driven by fractional Brownian motion in a real separable Hilbert space. The controllability results are…

Probability · Mathematics 2016-02-19 El Hassan Lakhel

We establish in this paper the existence of weak solutions of infinite-dimensional shift invariant stochastic differential equations driven by a Brownian term. The drift function is very general, in the sense that it is supposed to be…

Probability · Mathematics 2015-09-01 David Dereudre , Sylvie Roelly

We prove strong small deviations results for Brownian motion under independent time-changes satisfying their own asymptotic criteria. We then apply these results to certain stochastic integrals which are elements of second-order homogeneous…

Probability · Mathematics 2016-11-14 Daniel Dobbs , Tai Melcher

Functionals of Brownian motion have diverse applications in physics, mathematics, and other fields. The probability density function (PDF) of Brownian functionals satisfies the Feynman-Kac formula, which is a Schrodinger equation in…

Statistical Mechanics · Physics 2010-11-25 Shai Carmi , Lior Turgeman , Eli Barkai

This paper reviews and extends some recent results on the multivariate fractional Brownian motion (mfBm) and its increment process. A characterization of the mfBm through its covariance function is obtained. Similarly, the correlation and…

We construct the "expected signature matching" estimator for differential equations driven by rough paths and we prove its consistency and asymptotic normality. We use it to estimate parameters of a diffusion and a fractional diffusions,…

Probability · Mathematics 2011-12-16 Anastasia Papavasiliou , Christophe Ladroue

We consider a problem of statistical estimation of an unknown drift parameter for a stochastic differential equation driven by fractional Brownian motion. Two estimators based on discrete observations of solution to the stochastic…

Probability · Mathematics 2013-09-26 Yuliya Mishura , Kostiantyn Ral'chenko , Oleg Seleznev , Georgiy Shevchenko

We analyze the effect of additive fractional noise with Hurst parameter $H > \frac{1}{2}$ on fast-slow systems. Our strategy is based on sample paths estimates, similar to the approach by Berglund and Gentz in the Brownian motion case. Yet,…

Probability · Mathematics 2020-02-19 Katharina Eichinger , Christian Kuehn , Alexandra Neamtu

We develop the functional It\^o/path-dependent calculus with respect to fractional Brownian motion with Hurst parameter $H> \frac{1}{2}$. Firstly, two types of integrals are studied. The first type is Stratonovich integral, and the second…

Probability · Mathematics 2016-08-04 Jiaqiang Wen , Yufeng Shi

In this paper we derive novel change of variable formulas for stochastic integrals w.r.t. a time-changed Brownian motion where we assume that the time-change is a general increasing stochastic process with finitely many jumps in a bounded…

Probability · Mathematics 2024-07-04 Giulia Di Nunno , Hannes Haferkorn , Asma Khedher , Michèle Vanmaele

This paper deals with stochastic integrals of form $\int_0^T f(X_u)d Y_u$ in a case where the function $f$ has discontinuities, and hence the process $f(X)$ is usually of unbounded $p$-variation for every $p\geq 1$. Consequently,…

Probability · Mathematics 2016-12-06 Zhe Chen , Lauri Viitasaari
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