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We consider the class of self-similar Gaussian stochastic volatility models, and compute the small-time (near-maturity) asymptotics for the corresponding asset price density, the call and put pricing functions, and the implied volatilities.…

Mathematical Finance · Quantitative Finance 2016-03-16 Archil Gulisashvili , Frederi Viens , Xin Zhang

The distribution of the initial short-time displacements of particles is considered for a class of classical systems under rather general conditions on the dynamics and with Gaussian initial velocity distributions, while the positions could…

Statistical Mechanics · Physics 2007-05-23 R. van Zon , E. G. D. Cohen

We prove strong small deviations results for Brownian motion under independent time-changes satisfying their own asymptotic criteria. We then apply these results to certain stochastic integrals which are elements of second-order homogeneous…

Probability · Mathematics 2016-11-14 Daniel Dobbs , Tai Melcher

Several long-time limit theorems of one-dimensional L\'{e}vy processes weighted and normalized by functions of the local time are studied. The long-time limits are taken via certain families of random times, called clocks: exponential…

Probability · Mathematics 2023-01-18 Shosei Takeda , Kouji Yano

We consider matrix-valued processes described as solutions to stochastic differential equations of very general form. We study the family of the empirical measure-valued processes constructed from the corresponding eigenvalues. We show that…

Probability · Mathematics 2019-01-10 Jacek Małecki , José Luis Pérez

In the first part of this paper we give easy and intuitive proofs for the small value probabilities of the martingale limit of a supercritical Galton-Watson process in both the Schr\"oder and the B\"ottcher case. These results are…

Probability · Mathematics 2007-10-19 Peter Morters , Marcel Ortgiese

This paper suggests a perfect-information game, along the lines of Levy's characterization of Brownian motion, that formalizes the process of Brownian motion in game-theoretic probability. This is perhaps the simplest situation where…

Probability · Mathematics 2008-01-09 Vladimir Vovk

We prove a new inequality bounding the probability that the random walk on a group has small total displacement in terms of the spectral and isoperimetric profiles of the group. This inequality implies that if the random walk on the group…

Probability · Mathematics 2024-06-26 Tom Hutchcroft

We consider a standard one-dimensional Brownian motion on the time interval $[0,1]$ conditioned to have vanishing iterated time integrals up to order $N$. We show that the resulting processes can be expressed explicitly in terms of shifted…

Probability · Mathematics 2021-03-05 Karen Habermann

We find an expression for the joint Laplace transform of the law of $(T_{[x,+\infty[},X_{T_{[x,+\infty[}})$ for a L\'evy process $X$, where $T_{[x,+\infty[}$ is the first hitting time of $[x,+\infty[$ by $X$. When $X$ is an $\alpha$-stable…

Probability · Mathematics 2018-04-05 Fernando Cordero

We determine the rate of decay of the expectation Z(t) of some multiplicative functional related to Brownian motion up to time t. This permits to prove that the Wiener measure, penalized by this multiplicative functional, converges as t…

Probability · Mathematics 2007-05-23 Bernard Roynette , Pierre Vallois , Marc Yor

Let $X$ be a L\'evy process with regularly varying L\'evy measure $\nu$. We obtain sample-path large deviations for scaled processes $\bar X_n(t) \triangleq X(nt)/n$ and obtain a similar result for random walks. Our results yield detailed…

Probability · Mathematics 2017-12-12 Chang-Han Rhee , Jose Blanchet , Bert Zwart

An analytical study of the return time distribution of extreme events for stochastic processes with power-law correlation has been carried on. The calculation is based on an epsilon-expansion in the correlation exponent:…

Statistical Mechanics · Physics 2009-11-11 Piero Olla

The relativistic quantum decay laws of moving unstable particles are analyzed for a general class of mass distribution densities which behave as power laws near the (non-vanishing) lower bound $\mu_0$ of the mass spectrum. The survival…

Quantum Physics · Physics 2018-03-22 Filippo Giraldi

We construct a class of nonnegative martingale processes that oscillate indefinitely with high probability. For these processes, we state a uniform rate of the number of oscillations and show that this rate is asymptotically close to the…

Machine Learning · Computer Science 2014-08-18 Jan Leike , Marcus Hutter

We derive expressions for the dispersion for two classes of random variables in Markov processes. Random variables like current and activity pertain to the first class, which is composed by random variables that change whenever a jump in…

Statistical Mechanics · Physics 2015-10-13 Andre C. Barato , Udo Seifert

In this work we consider time series with a finite number of discrete point changes. We assume that the data in each segment follows a different probability density functions (pdf). We focus on the case where the data in all segments are…

Data Analysis, Statistics and Probability · Physics 2007-05-23 Ali Mohammad-Djafari , Olivier Feron

In this paper, we study the fractional Poisson process (FPP) time-changed by an independent L\'evy subordinator and the inverse of the L\'evy subordinator, which we call TCFPP-I and TCFPP-II, respectively. Various distributional properties…

Probability · Mathematics 2017-03-13 A. Maheshwari , P. Vellaisamy

Small random perturbations may have a dramatic impact on the long time evolution of dynamical systems, and large deviation theory is often the right theoretical framework to understand these effects. At the core of the theory lies the…

Numerical Analysis · Mathematics 2017-10-11 Tobias Grafke , Tobias Schaefer , Eric Vanden-Eijnden

For a random walk defined for a doubly infinite sequence of times, we let the time parameter itself be an integer-valued process, and call the orginal process a random walk at random time. We find the scaling limit which generalizes the…

Probability · Mathematics 2013-07-30 Paul Jung , Greg Markowsky