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We consider a square-integrable semimartingale and investigate the convex order relations between its discrete, continuous and predictable quadratic variation. As the main results, we show that if the semimartingale has conditionally…

Pricing of Securities · Quantitative Finance 2012-10-03 Martin Keller-Ressel , Claus Griessler

When the limiting compensator of a sequence of martingales is continuous, we obtain a weak convergence theorem for the martingales; the limiting process can be written as a Brownian motion evaluated at the compensator and we find sufficient…

Probability · Mathematics 2024-01-22 Bruno Rémillard , Jean Vaillancourt

Confidence sequences, anytime p-values (called p-processes in this paper), and e-processes all enable sequential inference for composite and nonparametric classes of distributions at arbitrary stopping times. Examining the literature, one…

Statistics Theory · Mathematics 2022-11-08 Aaditya Ramdas , Johannes Ruf , Martin Larsson , Wouter Koolen

This paper gives a complete characterization of infinitely divisible semimartingales, i.e., semimartingales whose finite dimensional distributions are infinitely divisible. An explicit and essentially unique decomposition of such…

Probability · Mathematics 2014-05-02 Andreas Basse-O'Connor , Jan Rosinski

Recent advances in stochastic gradient variational inference have made it possible to perform variational Bayesian inference with posterior approximations containing auxiliary random variables. This enables us to explore a new synthesis of…

Computation · Statistics 2015-05-20 Tim Salimans , Diederik P. Kingma , Max Welling

A supermartingale deflator (resp., local martingale deflator) multiplicatively transforms nonnegative wealth processes into supermartingales (resp., local martingales). The supermartingale numeraire (resp., local martingale numeraire) is…

Probability · Mathematics 2015-10-06 Yuri Kabanov , Constantinos Kardaras , Shiqi Song

Martingale techniques play a fundamental role in the analysis of point processes on the real line. In particular, the compensator of a point process uniquely determines and is determined by its distribution, and an explicit formula…

Probability · Mathematics 2013-09-04 B. Gail Ivanoff

The martingale comparison method is extended to derive comparison results for path-independent functions for general semimartingales. Our approach allows to dismiss with the Markovian assumption on one of the processes made in previous…

Probability · Mathematics 2019-08-28 Benedikt Köpfer , Ludger Rüschendorf

The paper develops multiplicative compensation for complex-valued semimartingales and studies some of its consequences. It is shown that the stochastic exponential of any complex-valued semimartingale with independent increments becomes a…

Probability · Mathematics 2023-05-10 Aleš Černý , Johannes Ruf

Using Vovk's outer measure, which corresponds to a minimal superhedging price, the existence of quadratic variation is shown for "typical price paths" in the space of c\`adl\`ag functions possessing a mild restriction on the jumps directed…

Mathematical Finance · Quantitative Finance 2018-11-14 Rafał M. Łochowski , Nicolas Perkowski , David J. Prömel

Marginal structural models were introduced in order to provide estimates of causal effects from interventions based on observational studies in epidemiological research. The key point is that this can be understood in terms of Girsanov's…

Statistics Theory · Mathematics 2011-07-15 Kjetil Røysland

We introduce a variational theory for processes adapted to the multi-dimensional Brownian motion filtration. The theory provides a differential structure which describes the infinitesimal evolution of Wiener functionals at very small…

Probability · Mathematics 2017-07-13 Alberto Ohashi , Dorival Leão , Alexandre B. Simas

We consider a financial market with one riskless and one risky asset. The super-replication theorem states that there is no duality gap in the problem of super-replicating a contingent claim under transaction costs and the associated dual…

Probability · Mathematics 2014-05-07 Walter Schachermayer

In this article, we develop a semigroup-theoretic framework for the analytic characterisation of martingales with path-dependent terminal conditions. Our main result establishes that a measurable adapted process of the form \[ V(t) -…

Probability · Mathematics 2025-07-03 Robert Denk , Markus Kunze , Michael Kupper

The main object of investigation in this paper is a very general regression model in optional setting - when an observed process is an optional semimartingale depending on an unknown parameter. It is well-known that statistical data may…

Statistics Theory · Mathematics 2021-03-16 Mohamed Abdelghani , Alexander Melnikov , Andrey Pak

We study the well-posedness of general reflected BSDEs driven by a continuous martingale, when the coefficient f of the driver has at most quadratic growth in the control variable Z, with a bounded terminal condition and a lower obstacle…

Probability · Mathematics 2013-10-22 Arnaud Lionnet

We construct a class of discontinuous superprocesses with dependent spatial motion and general branching mechanism. The process arises as the weak limit of critical interacting-branching particle systems where the spatial motions of the…

Probability · Mathematics 2008-07-02 Hui He

We show that the existence of a martingale approximation of a stationary process depends on the choice of the filtration. There exists a stationary linear process which has a martingale approximation with respect to the natural filtration,…

Probability · Mathematics 2011-09-13 Hervé Queffélec , Dalibor Volný

We consider fundamental questions of arbitrage pricing arising when the uncertainty model is given by a set of possible mutually singular probability measures. With a single probability model, essential equivalence between the absence of…

General Finance · Quantitative Finance 2016-11-26 Patrick Beißner

This paper contributes to the study of class $(\Sigma^{r})$ as well as the c\`adl\`ag semi-martingales of class $(\Sigma)$, whose finite variational part is c\`adl\`ag instead of continuous. The two above-mentioned classes of stochastic…

Probability · Mathematics 2021-08-30 Fulgence Eyi Obiang , Paule Joyce Mbenangoye , Octave Moutsinga