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In this article we consider rough differential equations (RDEs) driven by non-geometric rough paths, using the concept of branched rough paths introduced in Gubinelli (2004). We first show that branched rough paths can equivalently be…

Probability · Mathematics 2014-01-08 Martin Hairer , David Kelly

We provide a theory of manifold-valued rough paths of bounded 3 > p-variation, which we do not assume to be geometric. Rough paths are defined in charts, and coordinate-free (but connection-dependent) definitions of the rough integral of…

Classical Analysis and ODEs · Mathematics 2022-09-01 John Armstrong , Damiano Brigo , Thomas Cass , Emilio Ferrucci

We establish a simultaneous generalization of It\^o's theory of stochastic and Lyons' theory of rough differential equations. The interest in such a unification comes from a variety of applications, including pathwise stochastic filtering,…

Probability · Mathematics 2025-12-09 Peter K. Friz , Antoine Hocquet , Khoa Lê

In this paper we review and improve pathwise uniqueness results for some types of one-dimensional stochastic differential equations (SDE) involving the local time of the unknown process. The diffusion coefficient of the SDEs we consider is…

Probability · Mathematics 2018-11-07 Olivier Menoukeu-Pamen , Youssef Ouknine , Ludovic Tangpi

In this paper, we study rough path properties of stochastic integrals of It\^{o}'s type and Stratonovich's type with respect to $G$-Brownian motion. The roughness of $G$-Brownian Motion is estimated and then the pathwise Norris lemma in…

Probability · Mathematics 2016-08-24 Shige Peng , Huilin Zhang

Motivated by the recent advances in the theory of stochastic partial differential equations involving nonlinear functions of distributions, like the Kardar-Parisi-Zhang (KPZ) equation, we reconsider the unique solvability of one-dimensional…

Probability · Mathematics 2015-03-09 François Delarue , Roland Diel

Rough paths theory allows for a pathwise theory of solutions to differential equations driven by highly irregular signals. The fundamental observation of rough paths theory is that if one can define "iterated integrals" above a signal, then…

Dynamical Systems · Mathematics 2024-04-08 Francesco Cellarosi , Zachary Selk

We introduce a notion of rough paths on embedded submanifolds and demonstrate that this class of rough paths is natural. On the way we develop a notion of rough integration and an efficient and intrinsic theory of rough differential…

Probability · Mathematics 2017-05-17 Thomas Cass , Bruce K. Driver , Christian Litterer

We develop the functional It\^o/path-dependent calculus with respect to fractional Brownian motion with Hurst parameter $H> \frac{1}{2}$. Firstly, two types of integrals are studied. The first type is Stratonovich integral, and the second…

Probability · Mathematics 2016-08-04 Jiaqiang Wen , Yufeng Shi

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

In this paper, we investigate reflected backward stochastic differential equations driven by rough paths (rough RBSDEs), which can be viewed as probabilistic representations of nonlinear rough partial differential equations (rough PDEs) or…

Probability · Mathematics 2025-01-07 Hanwu Li , Huilin Zhang , Kuan Zhang

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

We present a new version of the stochastic sewing lemma, capable of handling multiple discontinuous control functions. This is then used to develop a theory of rough stochastic analysis in a c\`adl\`ag setting. In particular, we define…

Probability · Mathematics 2026-03-30 Andrew L. Allan , Jost Pieper

In this paper, we extend the first-order asymptotics analysis of Fouque et al. to general path-dependent financial derivatives using Dupire's functional Ito calculus. The main conclusion is that the market group parameters calibrated to…

Pricing of Securities · Quantitative Finance 2018-06-19 Yuri F. Saporito

In this paper we study the {\it pathwise stochastic Taylor expansion}, in the sense of our previous work \cite{Buckdahn_Ma_02}, for a class of It\^o-type random fields in which the diffusion part is allowed to contain both the random field…

Probability · Mathematics 2010-08-20 Rainer Buckdahn , Ingo Bulla , Jin Ma

In this paper we establish the associativity property of the pathwise It\^o integral in a functional setting for continuous integrators. Here, associativity refers to the computation of the It\^o differential of an It\^o integral, by means…

Probability · Mathematics 2018-05-23 Alexander Schied , Iryna Voloshchenko

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

We study fully nonlinear second-order (forward) stochastic partial differential equations (SPDEs). They can also be viewed as forward path-dependent PDEs (PPDEs) and will be treated as rough PDEs (RPDEs) under a unified framework. We…

Probability · Mathematics 2018-10-02 Rainer Buckdahn , Christian Keller , Jin Ma , Jianfeng Zhang

Whenever an It\^o-Wentsel type of formula holds for composition of flows of a certain differential dynamics, there exists locally a decomposition of the corresponding flow according to complementary distributions (or foliations, in the case…

Probability · Mathematics 2022-12-20 Pedro Catuogno , Lourival Lima , Paulo Ruffino

In this paper we establish a Taylor-like expansion in the context of the rough path theory for a family of It ^{o} maps indexed by a small parameter. We treat not only the case that the roughness $p$ satisfies $[p]=2$, but also the case…

Probability · Mathematics 2010-04-12 Yuzuru Inahama