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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 study Malliavin differentiability for the solutions of a stochastic differential equation with drift of super-linear growth. Assuming we have a monotone drift with polynomial growth, we prove Malliavin differentiability of any order. As…

Probability · Mathematics 2024-05-31 Cristina Anton

We study quasi-linear stochastic partial differential equations with discontinuous drift coefficients. Existence and uniqueness of a solution is already known under weaker conditions on the drift, but we are interested in the regularity of…

Probability · Mathematics 2014-11-27 Torstein Nilssen

By using large deviation theory that deals with the decay of probabilities of rare events on an exponential scale, we study the longtime behaviors and establish action functionals for scaled Brownian motion and L\'evy processes with…

Dynamical Systems · Mathematics 2019-08-27 Shenglan Yuan , Jinqiao Duan

We construct optimal Markov couplings of L\'{e}vy processes, whose L\'evy (jump) measure has an absolutely continuous component. The construction is based on properties of subordinate Brownian motions and the coupling of Brownian motions by…

Probability · Mathematics 2011-05-17 Björn Böttcher , René L. Schilling , Jian Wang

A continuous-time particle system on the real line satisfying the branching property and an exponential integrability condition is called a branching L\'evy process, and its law is characterized by a triplet $(\sigma^2,a,\Lambda)$. We…

Probability · Mathematics 2022-02-25 Bastien Mallein , Quan Shi

In this paper, we develop a novel method based on Malliavin calculus to find an approximation for the convexity adjustment for various classical interest rate products. Malliavin calculus provides a simple way to get a template for the…

Mathematical Finance · Quantitative Finance 2023-08-28 David García-Lorite , Raul Merino

We prove an existence and uniqueness result for generalized backward doubly stochastic differential equations driven by L\'evy processes with non-Lipschitz assumptions.

Probability · Mathematics 2009-07-17 Auguste Aman , Jean Marc Owo

We study counterfactual stochastic optimization of conditional loss functionals under misspecified and noisy gradient information. The difficulty is that when the conditioning event has vanishing or zero probability, naive Monte Carlo…

Optimization and Control · Mathematics 2025-10-02 Vikram Krishnamurthy , Luke Snow

We study multi-dimensional normal approximations on the Poisson space by means of Malliavin calculus, Stein's method and probabilistic interpolations. Our results yield new multi-dimensional central limit theorems for multiple integrals…

Probability · Mathematics 2010-04-14 Giovanni Peccati , Cengbo Zheng

In this article, we give a brief informal introduction to Malliavin Calculus for newcomers. We apply these ideas to the simulation of Greeks in Finance. First to European-type options where formulas can be computed explicitly and therefore…

Statistical Mechanics · Physics 2008-12-10 Arturo Kohatsu-Higa , Miquel Montero

In this article we consider the Levy processes and the corresponding semigroup. We represent the generator of this semigroup in a convolution form. Using the obtained convolution form and the theory of integral equations we investigate the…

Probability · Mathematics 2011-04-05 Lev Sakhnovich

The purpose of this paper is to construct the law of a L\'evy process conditioned to avoid zero, under mild technicals conditions, two of them being that the point zero is regular for itself and the L\'evy process is not a compound Poisson…

Probability · Mathematics 2016-10-17 Henry Pantí

In this article we study the fractal Navier-Stokes equations by using stochastic Lagrangian particle path approach in Constantin and Iyer \cite{Co-Iy}. More precisely, a stochastic representation for the fractal Navier-Stokes equations is…

Probability · Mathematics 2015-05-27 Xicheng Zhang

We study Malliavin differentiability of solutions to sub-critical singular parabolic stochastic partial differential equations (SPDEs) and we prove the existence of densities for a class of singular SPDEs. Both of these results are…

Probability · Mathematics 2018-09-12 Philipp Schönbauer

It is well known that between all processes with independent increments, essentially only the Brownian motion and the Poisson process possess the chaotic representation property (CRP). Thus, a natural question appears: What is an…

Probability · Mathematics 2016-09-07 E. Lytvynov

A branching L\'evy process can be seen as the continuous-time version of a branching random walk. It describes a particle system on the real line in which particles move and reproduce independently in a Poissonian manner. Just as for L\'evy…

Probability · Mathematics 2019-05-21 Jean Bertoin , Bastien Mallein

In this paper, we investigate a class of McKean-Vlasov stochastic differential equations under L\'evy-type perturbations. We first establish the existence and uniqueness theorem for solutions of the McKean-Vlasov stochastic differential…

Probability · Mathematics 2023-09-07 Ying Chao , Jinqiao Duan , Ting Gao , Pingyuan Wei

We establish a moderate deviation principle for processes with independent increments under certain growth conditions for the characteristics of the process. Using this moderate deviation principle, we give a new proof for Strassen's…

Probability · Mathematics 2016-05-20 Franziska Kühn , René L. Schilling

In this paper we study the existence of a unique solution for linear stochastic differential equations driven by a L\'evy process, where the initial condition and the coefficients are random and not necessarily adapted to the underlying…

Probability · Mathematics 2012-07-09 Jorge A. León , David Márquez-Carreras , Josep Vives
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