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Several versions of It\^{o}'s formula have been obtained in the setting of the functional stochastic calculus. In this regard, we present a local time-space version that works for arbitrary bounded and continuous functionals of L\'{e}vy…

Probability · Mathematics 2024-06-04 Christian Houdré , Jorge Víquez

This is a survey note of the author's observations on the discrete-time analogues of It\^o formulas.

Probability · Mathematics 2007-05-23 Jirô Akahori

We consider additive functionals as a time and space-dependent function of a diffusion corresponding to nonhomogeneous uniformly elliptic divergence form operator. We show that if the function belongs to natural domain of strong solutions…

Probability · Mathematics 2015-03-24 Tomasz Klimsiak

Using the theory of stochastic integration for processes with values in a UMD Banach space developed recently by the authors, an Ito formula is proved which is applied to prove the existence of strong solutions for a class of stochastic…

Probability · Mathematics 2008-04-03 Z. Brzezniak , J. M. A. M. van Neerven , M. C. Veraar , L. Weis

A generalized It${\hat {\rm o}}$ formula for time dependent functions of two-dimensional continuous semi-martingales is proved. The formula uses the local time of each coordinate process of the semi-martingale, left space and time first…

Probability · Mathematics 2008-11-13 Chunrong Feng , Huaizhong Zhao

The quantum Ito formula has so far been proved for regular (bounded) quantum semimartingales We give three different extensions to classes of essentially self-adjoint (unbounded) quantum semimartingales. The first extension is to quantum…

Quantum Algebra · Mathematics 2007-05-23 G. F. Vincent-Smith

In this note we define and study a Hilbert space-valued stochastic integral of operator-valued functions with respect to Hilbert space-valued measures. We show that this integral generalizes the classical Ito stochastic integral of adapted…

Functional Analysis · Mathematics 2016-06-14 Volodymyr Tesko

Motivated by recent development of mean-field systems with common noise, this paper establishes Ito's formula for flows of conditional probability measures under a common filtration associated with general semimartingales. This generalizes…

Probability · Mathematics 2025-08-12 Xin Guo , Jiacheng Zhang

Motivated by questions arising in financial mathematics, Dupire introduced a notion of smoothness for functionals of paths (different from the usual Fr\'echet--Gat\'eaux derivatives) and arrived at a generalization of It\=o's formula…

Probability · Mathematics 2012-12-07 Harald Oberhauser

In this work, we establish pathwise functional It\^o formulas for non-smooth functionals of real-valued continuous semimartingales. Under finite $(p,q)$-variation regularity assumptions in the sense of two-dimensional Young integration…

Probability · Mathematics 2015-05-19 Alberto Ohashi , Evelina Shamarova , Nikolai N. Shamarov

Bardina and Jolis [Stochastic process. Appl. 69 (1997) 83--109] prove an extension of It\^{o}'s formula for $F(X_t,t)$, where $F(x,t)$ has a locally square-integrable derivative in $x$ that satisfies a mild continuity condition in $t$ and…

Probability · Mathematics 2009-09-29 Xavier Bardina , Carles Rovira

K. It\^{o} characterised in \cite{ito} zero-mean stationary Gauss Markov-processes evolving on a class of infinite-dimensional spaces. In this work we extend the work of It\^{o} in the case of Hilbert spaces: Gauss-Markov families that are…

Probability · Mathematics 2013-07-11 Ben Goldys , Szymon Peszat , Jerzy Zabczyk

The problem of the Taylor-Ito and Taylor-Stratonovich expansions of the Ito stochastic processes in a neighborhood of a fixed moment of time is considered. The classical forms of the Taylor-Ito and Taylor-Stratonovich expansions are…

Probability · Mathematics 2026-02-13 Dmitriy F. Kuznetsov

A stochastic process $X$ becomes occupied when it is enlarged with its occupation flow $\mathcal{O}$ that tracks the time spent by the path at each level. When $X$ is Markov, the occupied process $(\mathcal{O},X)$ enjoys a Markov structure…

Probability · Mathematics 2026-04-30 Valentin Tissot-Daguette

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

The functional Ito formula, firstly introduced by Bruno Dupire for continuous semimartingales, might be extended in two directions: different dynamics for the underlying process and/or weaker assumptions on the regularity of the functional.…

Probability · Mathematics 2018-06-19 Yuri F. Saporito

Using results from our companion article [arXiv:1112.4824v2] on a Schauder approach to existence of solutions to a degenerate-parabolic partial differential equation, we solve three intertwined problems, motivated by probability theory and…

Probability · Mathematics 2016-04-08 Paul M. N. Feehan , Camelia Pop

Based on an extension of the martingale comparison method some comparison results for path-dependent functions of semimartingales are established. The proof makes essential use of the functional It\^o calculus. A main tool is an extension…

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

For stochastic systems driven by continuous semimartingales an explicit formula for the logarithm of the Ito flow map is given. A similar formula is also obtained for solutions of linear matrix-valued SDEs driven by arbitrary…

Probability · Mathematics 2015-11-24 Kurusch Ebrahimi-Fard , Simon J. A. Malham , Frederic Patras , Anke Wiese

Starting from the potential theoretic definition of the local times of a Markov process - when these exist - we obtain a Tanaka formula for the local times of symmetric L\'{e}vy processes. The most interesting case is that of the symmetric…

Probability · Mathematics 2007-05-23 Paavo Salminen , Marc Yor