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We develop a nonanticipative calculus for functionals of a continuous semimartingale, using an extension of the Ito formula to path-dependent functionals which possess certain directional derivatives. The construction is based on a pathwise…

Probability · Mathematics 2013-02-05 Rama Cont , David-Antoine Fournié

The constructive martingale representation theorem of functional It\^o calculus is extended, from the space of square integrable martingales, to the space of local martingales. The setting is that of an augmented filtration generated by a…

Probability · Mathematics 2018-12-11 Kristoffer Lindensjö

We derive a functional change of variable formula for {\it non-anticipative} functionals defined on the space of right continuous paths with left limits. The functional is only required to possess certain directional derivatives, which may…

Probability · Mathematics 2010-04-09 Rama Cont , David-Antoine Fournie

A peculiar feature of It\^o's calculus is that it is an integral calculus that gives no explicit derivative with a systematic differentiation theory counterpart, as in elementary calculus. So, can we define a pathwise stochastic derivative…

Probability · Mathematics 2010-05-25 Hassan Allouba

In this note we define and study a Hilbert space-valued stochastic integral of operator-valued functions with respect to Hilbert space-valued measures. We show that this integral generalizes the classical Ito stochastic integral of adapted…

Functional Analysis · Mathematics 2016-06-14 Volodymyr Tesko

Using the theory of stochastic integration developed recently by the authors, in this paper we prove an It\^{o} formula for Hilbert space-valued It\^{o} processes defined with respect to a cylindrical-martingale valued measure. As part of…

Probability · Mathematics 2024-12-17 Santiago Cambronero , David Campos , C. A. Fonseca-Mora , Darío Mena

This paper considers the problem of constructing finite-dimensional state space realizations for stochastic processes that can be represented as the outputs of a certain type of a causal system driven by a continuous semimartingale input…

Optimization and Control · Mathematics 2024-02-16 Tanya Veeravalli , Maxim Raginsky

We present a new approach to noncommutative stochastic calculus that is, like the classical theory, based primarily on the martingale property. Using this approach, we introduce a general theory of stochastic integration and quadratic…

Operator Algebras · Mathematics 2025-10-28 David A. Jekel , Todd A. Kemp , Evangelos A. Nikitopoulos

We consider stochastic versions of the Cauchy exponential functional equation and give a martingale characterization of the general solution.

Probability · Mathematics 2021-12-30 Beso Chikvinidze , Michael Mania , Revaz Tevzadze

For non-anticipative functionals, differentiable in Chitashvili's sense, the It\^o formula for cadlag semimartingales is proved. Relations between different notions of functional derivatives are established.

Probability · Mathematics 2019-03-28 Michael Mania , Revaz Tevzadze

In this article we study existence of pathwise stochastic integrals with respect to a general class of $n$-dimensional Gaussian processes and a wide class of adapted integrands. More precisely, we study integrands which are functions that…

Probability · Mathematics 2014-11-25 Zhe Chen , Lauri Viitasaari

Several versions of It\^{o}'s formula have been obtained in the context of the functional stochastic calculus. Here, we revisit this topic in two ways. First, by defining a notion of derivative along a functional, we extend the setting of…

Probability · Mathematics 2022-02-25 Christian Houdré , Jorge Víquez

We develop a stochastic calculus that makes it easy to capture a variety of predictable transformations of semimartingales such as changes of variables, stochastic integrals, and their compositions. The framework offers a unified treatment…

Probability · Mathematics 2022-01-13 Aleš Černý , Johannes Ruf

We consider some versions and generalizations of an approach to the expansion of iterated Ito stochastic integrals of arbitrary multiplicity $k$ $(k\in\mathbb{N})$ based on generalized multiple Fourier series. Expansions of iterated…

Probability · Mathematics 2023-08-01 Dmitriy F. Kuznetsov

We construct a new topology on the space of stopped paths and introduce a calculus for causal functionals on generic domains of this space. We propose a generic approach to pathwise integration without any assumption on the variation index…

Probability · Mathematics 2022-08-23 Henry Chiu , Rama Cont

We present a systematic method for computing explicit approximations to martingale representations for a large class of Brownian functionals. The approximations are obtained by obtained by computing a directional derivative of the weak…

Probability · Mathematics 2018-03-28 Rama Cont , Yi Lu

Based on an extension of the martingale comparison method some comparison results for path-dependent functions of semimartingales are established. The proof makes essential use of the functional It\^o calculus. A main tool is an extension…

Probability · Mathematics 2019-08-28 Benedikt Köpfer , Ludger Rüschendorf

A stochastic calculus is given for processes described by stochastic integrals with respect to fractional Brownian motions and Rosenblatt processes somewhat analogous to the stochastic calculus for It\^{o} processes. These processes for…

Probability · Mathematics 2019-08-02 Petr Čoupek , Tyrone E. Duncan , Bozenna Pasik-Duncan

Functional It^o calculus is based on an extension of the classical It^o calculus to functionals depending on the entire past evolution of the underlying paths and not only on its current value. The calculus builds on Follmer's…

Probability · Mathematics 2025-02-11 Siboniso Confrence Nkosi , Farai Julius Mhlanga

We discuss the relationships between some classical representations of the fractional Brownian motion, as a stochastic integral with respect to a standard Brownian motion, or as a series of functions with independent Gaussian coefficients.…

Probability · Mathematics 2010-05-31 Jean Picard
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