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For stochastic approximation algorithms with discontinuous dynamics, it is shown that under suitable distributional assumptions, the interpolated iterates track a Fillipov solution of the limiting differential inclusion. In addition, we…

Probability · Mathematics 2023-09-04 Vivek Borkar , Dhruv Shah

For a mixed stochastic differential driven by independent fractional Brownian motions and Wiener processes, the existence and integrability of the Malliavin derivative of its solution are established. It is also proved that the solution…

Probability · Mathematics 2013-09-25 Georgiy Shevchenko , Taras Shalaiko

Many complex systems are characterized by intriguing spatio-temporal structures. Their mathematical description relies on the analysis of appropriate correlation functions. Functional integral techniques provide a unifying formalism that…

Statistical Mechanics · Physics 2009-11-12 Uwe C. Tauber

Using Malliavin Calculus techniques, we derive closed-form expressions for the at-the-money behaviour of the forward implied volatility, its skew and its curvature, in general Markovian stochastic volatility models with continuous paths.

Pricing of Securities · Quantitative Finance 2017-11-01 Elisa Alos , Antoine Jacquier , Jorge Leon

The total entropy production of stochastic systems can be divided into three quantities. The first corresponds to the excess heat, whilst the second two comprise the house-keeping heat. We denote these two components the transient and…

Statistical Mechanics · Physics 2015-06-03 Richard E. Spinney , Ian J. Ford

We study the convergence in probability in the non-standard $M_1$ Skorokhod topology of the Hilbert valued stochastic convolution integrals of the type $\int_0^t F_\gamma(t-s)\,d L(s)$ to a process $\int_0^t F(t-s)\, d L(s)$ driven by a…

Probability · Mathematics 2014-08-20 Ilya Pavlyukevich , Markus Riedle

This survey is a preliminary version of a chapter of the forthcoming book "Stochastic Analysis for Poisson Point Processes: Malliavin Calculus, Wiener-It\^o Chaos Expansions and Stochastic Geometry" edited by Giovanni Peccati and Matthias…

Probability · Mathematics 2014-05-20 Günter Last

In this paper, we are concerned with nonparametric inference on the volatility of volatility process in stochastic volatility models. We construct several estimators for its integrated version in a high-frequency setting, all based on…

Statistics Theory · Mathematics 2015-09-30 Mathias Vetter

In this work we introduce a theory of stochastic integration with respect to general cylindrical semimartingales defined on a locally convex space $\Phi$. Our construction of the stochastic integral is based on the theory of tensor products…

Probability · Mathematics 2021-12-06 C. A. Fonseca-Mora

A distributional equation as a criterion for invariant measures of Markov processes associated to L\'evy-type operators is established. This is obtained via a characterization of infinitesimally invariant measures of the associated…

Probability · Mathematics 2022-08-17 Anita Behme , David Oechsler

This paper considers a controlled It\^o-L\'evy process where the information available to the controller is possibly less than the overall information. All the system coefficients and the objective performance functional are allowed to be…

Optimization and Control · Mathematics 2009-11-20 Thilo Meyer-Brandis , Xunyu Zhou , Bernt Oksendal

We show that the centered discrete Hilbert transform on integers applied to a function can be written as the conditional expectation of a transform of stochastic integrals, where the stochastic processes considered have jump components. The…

Probability · Mathematics 2017-01-26 Nicola Arcozzi , Komla Domelevo , Stefanie Petermichl

We introduce a novel simulation scheme, iVi (integrated Volterra implicit), for integrated Volterra square-root processes and Volterra Heston models based on the Inverse Gaussian distribution. The scheme is designed to handle $L^1$ kernels…

Mathematical Finance · Quantitative Finance 2025-04-29 Eduardo Abi Jaber , Elie Attal

The partially observed linear Gaussian system of stochastic differential equations with low noise in observations is considered. A kernel-type estimators are used for estimation of the quadratic variation of the derivative of the limit of…

Statistics Theory · Mathematics 2022-11-23 Yury A. Kutoyants

The goal of this paper is to define stochastic integrals and to solve stochastic differential equations for typical paths taking values in a possibly infinite dimensional separable Hilbert space without imposing any probabilistic structure.…

Probability · Mathematics 2019-09-30 Daniel Bartl , Michael Kupper , Ariel Neufeld

In this paper new analytical and numerical approaches to valuating path-dependent options of European type have been developed. The model of stochastic volatility as a basic model has been chosen. For European options we could improve the…

Pricing of Securities · Quantitative Finance 2010-09-24 Yu. A. Kuperin , P. A. Poloskov

We develop a stochastic analysis for a Gaussian process $X$ with singular covariance by an intrinsic procedure focusing on several examples such as covariance measure structure processes, bifractional Brownian motion, processes with…

Probability · Mathematics 2010-12-01 Ida Kruk , Francesco Russo

Numerical solution of one-dimensional stochastic integral equations because of the randomness has its own problems, i.e. some of them no have analytically solution or finding their analytic solution is very difficult. This problem for…

Numerical Analysis · Mathematics 2015-05-20 M. Fallahpour , M. Khodabin , K. Maleknejad

This article establishes an asymptotic theory for volatility estimation in an infinite-dimensional setting. We consider mild solutions of semilinear stochastic partial differential equations and derive a stable central limit theorem for the…

Statistics Theory · Mathematics 2023-03-14 Fred Espen Benth , Dennis Schroers , Almut E. D. Veraart

In the setting of stochastic Volterra equations, and in particular rough volatility models, we show that conditional expectations are the unique classical solutions to path-dependent PDEs. The latter arise from the functional It\^o formula…

Probability · Mathematics 2026-05-27 Ofelia Bonesini , Antoine Jacquier , Alexandre Pannier