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In this paper, we consider the pricing and hedging of a financial derivative for an insider trader, in a model-independent setting. In particular, we suppose that the insider wants to act in a way which is independent of any modelling…

Mathematical Finance · Quantitative Finance 2020-06-25 Beatrice Acciaio , Alexander M. G. Cox , Martin Huesmann

This thesis develops a mathematical framework for the analysis of continuous-time trading strategies which, in contrast to the classical setting of continuous-time finance, does not rely on stochastic integrals or other probabilistic…

Probability · Mathematics 2016-02-16 Candia Riga

Optimal control of heterogeneous mean-field stochastic differential equations with common noise has not been addressed in the literature. In this work, we initiate the study of such models. We formulate the problem within a linear-quadratic…

Optimization and Control · Mathematics 2025-11-25 Filippo de Feo , Samy Mekkaoui

Stochastic trajectory optimization methods like STOMP enable planning with non-differentiable costs, offering substantial flexibility over gradient-based approaches. We show that STOMP implicitly minimizes the KL divergence from a Boltzmann…

Robotics · Computer Science 2026-05-11 Hongzhe Yu , Zinuo Chang , Yongxin Chen

The lifted Heston model is a stochastic volatility model emerging as a Markovian lift of the rough Heston model and the class of rough volatility processes. The model encodes the path dependency of volatility on a set of N square-root state…

Mathematical Finance · Quantitative Finance 2025-10-13 Nicola F. Zaugg , Lech A. Grzelak

Combining fractional calculus and the Rough Path Theory we study the existence and uniqueness of mild solutions to evolutions equations driven by a H\"older continuous function with H\"older exponent in $(1/3,1/2)$. Our stochastic integral…

Analysis of PDEs · Mathematics 2013-05-06 María J. Garrido-Atienza , Kening Lu , Björn Schmalfuss

We consider stochastic optimization problems involving an expected value of a nonlinear function of a base random vector and a conditional expectation of another function depending on the base random vector, a dependent random vector, and…

Optimization and Control · Mathematics 2024-05-20 Andrzej Ruszczyński , Shangzhe Yang

Higher order schemes for stochastic partial differential equations that do not possess commutative noise require the simulation of iterated stochastic integrals. In this work, we propose a derivative-free Milstein type scheme to approximate…

Probability · Mathematics 2020-06-16 Claudine von Hallern , Andreas Rößler

We describe stochastic calculus in the context of processes that are driven by an adapted point process of locally finite intensity and are differentiable between jumps. This includes Markov chains as well as non-Markov processes. By…

Probability · Mathematics 2016-07-26 Eric Foxall

This paper proposes a general duality framework for the problem of minimizing a convex integral functional over a space of stochastic processes adapted to a given filtration. The framework unifies many well-known duality frameworks from…

Computational Finance · Quantitative Finance 2010-06-28 Teemu Pennanen

In this paper we derive a efficient Monte Carlo approximation for the price of path-dependent derivatives under the multiscale stochastic volatility models of Fouque \textit{et al}. Using the formulation of this pricing problem under the…

Computational Finance · Quantitative Finance 2020-05-12 Yuri F. Saporito

Many interesting physical theories have analytic classical actions. We show how Feynman's path integral may be defined non-perturbatively, for such theories, without a Wick rotation to imaginary time. We start by introducing a class of…

High Energy Physics - Theory · Physics 2023-05-17 Job Feldbrugge , Neil Turok

We consider a simplified version of the problem of insider trading in a financial market. We approach it by means of anticipating stochastic calculus and compare the use of the Hitsuda-Skorokhod, the Ayed-Kuo, and the Russo-Vallois forward…

Probability · Mathematics 2018-09-13 Joan C. Bastons , Carlos Escudero

We construct a pathwise integration theory, associated with a change of variable formula, for smooth functionals of continuous paths with arbitrary regularity defined in terms of the notion of $p$-th variation along a sequence of time…

Probability · Mathematics 2019-05-07 Rama Cont , Nicolas Perkowski

Choosing the optimization algorithm that performs best on a given machine learning problem is often delicate, and there is no guarantee that current state-of-the-art algorithms will perform well across all tasks. Consequently, the more…

Optimization and Control · Mathematics 2024-06-25 Måns Williamson , Monika Eisenmann , Tony Stillfjord

This paper addresses planning and control of robot motion under uncertainty that is formulated as a continuous-time, continuous-space stochastic optimal control problem, by developing a topology-guided path integral control method. The path…

Robotics · Computer Science 2022-08-01 Jung-Su Ha , Soon-Seo Park , Han-Lim Choi

This article gives an account on various aspects of stochastic calculus in the plane. Specifically, our aim is 3-fold: (i) Derive a pathwise change of variable formula for a path indexed by a square, satisfying some H\"older regularity…

Probability · Mathematics 2013-09-26 Khalil Chouk , Samy Tindel

Stochastic computational models in the form of pure jump processes occur frequently in the description of chemical reactive processes, of ion channel dynamics, and of the spread of infections in populations. For spatially extended models,…

Numerical Analysis · Mathematics 2018-02-23 Augustin Chevallier , Stefan Engblom

In this manuscript, we present a novel approach for sampling from a continuous multivariate probability distribution, which may either be explicitly known (up to a normalization factor) or represented via empirical samples. Our method…

Machine Learning · Statistics 2025-03-14 Hamidreza Behjoo , Michael Chertkov

Monte-Carlo valuation engines can generate pathwise sensitivities of a derivative value with respect to a high-dimensional vector of model primitives. Hedge ratios with respect to market instruments are then linked to these primitive…

Risk Management · Quantitative Finance 2026-05-26 Christian P Fries