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We derive a backward and forward nonlinear PDEs that govern the implied volatility of a contingent claim whenever the latter is well-defined. This would include at least any contingent claim written on a positive stock price whose payoff at…

Computational Finance · Quantitative Finance 2019-07-18 Peter Carr , Andrey Itkin , Sasha Stoikov

Choice functions constitute a simple, direct and very general mathematical framework for modelling choice under uncertainty. In particular, they are able to represent the set-valued choices that typically arise from applying decision rules…

Artificial Intelligence · Computer Science 2018-06-05 Jasper De Bock , Gert de Cooman

This paper deals with (finite or infinite) sequences of arbitrary independent events in some probability space. We find sharp lower bounds for the probability of a union of such events when the sum of their probabilities is given. The…

Probability · Mathematics 2016-09-29 Jürgen Grahl , Shahar Nevo

We use the martingale-theoretic approach of game-theoretic probability to incorporate imprecision into the study of randomness. In particular, we define several notions of randomness associated with interval, rather than precise,…

Probability · Mathematics 2021-06-24 Gert de Cooman , Jasper De Bock

The inferential model (IM) framework provides valid prior-free probabilistic inference by focusing on predicting unobserved auxiliary variables. But, efficient IM-based inference can be challenging when the auxiliary variable is of higher…

Statistics Theory · Mathematics 2015-01-20 Ryan Martin , Chuanhai Liu

We construct meta-intransitive systems of independent random variables of any finite order from basic tuple of random variables which generalize intransitive dice. Under this construction, the equality of some linear functional is…

Probability · Mathematics 2024-05-07 Alexey V. Lebedev

In this paper, we extend the G-expectation theory to infinite dimensions. Such notions as a covariation set of G-normal distributed random variables, viscosity solution, a stochastic integral driven by G-Brownian motion are introduced and…

Probability · Mathematics 2013-06-25 Anton Ibragimov

We give a theory of sublinear expectations and martingales in discrete time. Without assuming the existence of a dominating probability measure, we derive the extensions of classical results on uniform integrability, optional stopping of…

Probability · Mathematics 2011-04-29 Samuel Cohen , Shaolin Ji , Shige Peng

The paper deals with the order statistics and empirical mathematical expectation (which is also called the estimate of mathematical expectation in the literature) in the case of infinitely increasing random variables. The Kolmogorov concept…

Mathematical Physics · Physics 2013-03-19 V. P. Maslov , T. V. Maslova

We study finite probability theory through a category of finite probability schemes and probability-preserving maps, called \emph{bundles}. A bundle simultaneously records a quotient of a sample space, an algebra of random variables, and…

Probability · Mathematics 2026-05-20 Wai Yan Pong

We introduce a family of quantum semigroups and their natural coactions on noncommutative polynomials. We present three invariance conditions, associated with these coactions, for the joint distribution of sequences of selfadjoint…

Operator Algebras · Mathematics 2014-10-28 Weihua Liu

In this work, we study convergence in probability and almost sure convergence for weighted partial sums of random variables that are related to the class of generalized Oppenheim expansions. It is worth noting that the random variables…

Probability · Mathematics 2022-07-21 Rita Giuliano , Milto Hadjikyriakou

The predicate complementary to the well-known Godel's provability predicate is defined. From its recursiveness new consequences concerning the incompleteness argumentation are drawn and extended to new results of consistency, completeness…

General Mathematics · Mathematics 2007-05-23 Paola Cattabriga

We present a semantics for adding uncertainty to conditional logics for default reasoning and belief revision. We are able to treat conditional sentences as statements of conditional probability, and express rules for revision such as "If A…

Artificial Intelligence · Computer Science 2013-03-08 Craig Boutilier

While there exists a well-developed asymptotic theory of Fr\'echet means of random variables taking values in a general "finite-dimensional" metric space, there are only a few known results in which the random variables can take values in…

Probability · Mathematics 2024-12-30 Adam Quinn Jaffe

We derive new bounds of the remainder in a combinatorial central limit theorem without assumptions on independence and existence of moments of summands. For independent random variables our theorems imply Esseen and Berry-Esseen type…

Probability · Mathematics 2014-05-08 Andrei N. Frolov

We present a novel proof of de Finetti's Theorem characterizing permutation-invariant probability measures of infinite sequences of variables, so-called exchangeable measures. The proof is phrased in the language of Markov categories, which…

Probability · Mathematics 2021-11-08 Tobias Fritz , Tomáš Gonda , Paolo Perrone

An approach to induction is presented, based on the idea of analysing the context of a given problem into `circumstances'. This approach, fully Bayesian in form and meaning, provides a complement or in some cases an alternative to that…

Data Analysis, Statistics and Probability · Physics 2007-05-23 P. G. L. Porta Mana , A. Månsson , G. Björk

We define the independent natural extension of two local models for the general case of infinite spaces, using both sets of desirable gambles and conditional lower previsions. In contrast to Miranda and Zaffalon (2015), we adopt…

Probability · Mathematics 2018-05-02 Jasper De Bock

We show that the classical de Finetti theorem has a canonical noncommutative counterpart if we strengthen `exchangeability' (i.e., invariance of the joint distribution of the random variables under the action of the permutation group) to…

Operator Algebras · Mathematics 2009-11-13 Claus Köstler , Roland Speicher