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Related papers: Single Jump Processes and Strict Local Martingales

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This paper is devoted to tangent martingales in Banach spaces. We provide the definition of tangency through local characteristics, basic $L^p$- and $\phi$-estimates, a precise construction of a decoupled tangent martingale, new estimates…

Probability · Mathematics 2020-09-22 Ivan S. Yaroslavtsev

This paper introduces test and estimation procedures for abrupt and gradual changes in the entire jump behaviour of a discretely observed Ito semimartingale. In contrast to existing work we analyse jumps of arbitrary size which are not…

Statistics Theory · Mathematics 2019-02-08 Michael Hoffmann , Holger Dette

This article investigates discrete-time approximations of stochastic integrals driven by semimartingales with jumps via weighted bounded mean oscillation (BMO) approach. This approach enables $L_p$-estimates, $p \in (2, \infty)$, for the…

Probability · Mathematics 2021-12-14 Nguyen Tran Thuan

We give sufficient criteria for the Dol\'eans-Dade exponential of a stochastic integral with respect to a counting process local martingale to be a true martingale. The criteria are adapted particularly to the case of counting processes and…

Probability · Mathematics 2015-09-09 Alexander Sokol , Niels Richard Hansen

We present a model for the dynamics of a population of bacteria with a continuum of traits, who compete for resources and exchange horizontally (transfer) an otherwise vertically inherited trait with possible mutations. Competition…

Probability · Mathematics 2017-07-27 Sylvain Billiard , Pierre Collet , Régis Ferrière , Sylvie Méléard , Viet Chi Tran

We define a class of random measures, spatially independent martingales, which we view as a natural generalisation of the canonical random discrete set, and which includes as special cases many variants of fractal percolation and Poissonian…

Classical Analysis and ODEs · Mathematics 2015-02-27 Pablo Shmerkin , Ville Suomala

In this paper we study a family of nonlinear (conditional) expectations that can be understood as a semimartingale with uncertain local characteristics. Here, the differential characteristics are prescribed by a time and path-dependent…

Probability · Mathematics 2023-11-07 David Criens , Lars Niemann

We consider one-dimensional stochastic differential equations with jumps in the general case. We introduce new technics based on local time and we prove new results on pathwise uniqueness and comparison theorems. Our approach are very easy…

Probability · Mathematics 2011-08-22 M. Benabdallah , S. Bouhadou , Y. Ouknine

Strict local martingales may admit arbitrage opportunities with respect to the class of simple trading strategies. (Since there is no possibility of using doubling strategies in this framework, the losses are not assumed to be bounded from…

Pricing of Securities · Quantitative Finance 2009-01-10 Erhan Bayraktar , Hasanjan Sayit

For a real Borel measurable function b, which satisfies certain integrability conditions, it is possible to define a stochastic integral of the process b(Y) with respect to a Brownian motion W, where Y is a diffusion driven by W. It is well…

Probability · Mathematics 2010-10-06 Aleksandar Mijatović , Nika Novak , Mikhail Urusov

We prove that, for locally bounded processes, absence of arbitrage opportunities of the first kind is equivalent to the existence of a dominating local martingale measure. This is related to and motivated by results from the theory of…

Probability · Mathematics 2013-04-02 Peter Imkeller , Nicolas Perkowski

This thesis presents a formalization of martingales in arbitrary Banach spaces using Isabelle/HOL. We begin by examining formalizations in prominent proof repositories and extend the definition of the conditional expectation operator from…

Logic in Computer Science · Computer Science 2023-11-13 Ata Keskin

When the \textit{martingale representation property} holds, we call any local martingale which realizes the representation a \textit{representation process}. There are two properties of the \textit{representation process} which can greatly…

Probability · Mathematics 2016-03-18 Shiqi Song

In this paper, we study the martingale property for a Scott correlated stochastic volatility model, when the correlation coefficient between the Brownian motion driving the volatility and the one driving the asset price process is…

Probability · Mathematics 2016-06-14 Khadija Akdim , M'hamed Eddahbi , Mouna Haddadi

We consider the pricing of derivatives in a setting with trading restrictions, but without any probabilistic assumptions on the underlying model, in discrete and continuous time. In particular, we assume that European put or call options…

Mathematical Finance · Quantitative Finance 2015-06-09 Alexander M. G. Cox , Zhaoxu Hou , Jan Obloj

In this paper we discuss existence and uniqueness for a one-dimensional time inhomogeneous stochastic differential equation directed by an $\mathbb{F}$-semimartingale $M$ and a finite cubic variation process $\xi$ which has the structure…

Probability · Mathematics 2007-05-23 Rosanna Coviello , Francesco Russo

Given a random sample from a random variable $T$ which is bounded from above, $T\le\tau$ a.s., we define processes that are positive supermartingales if $E(T)\ge\mu$. Such processes are called test martingales. Tests of the supermartingale…

Methodology · Statistics 2018-02-20 Harrie Hendriks

We consider the dynamics of a 1D system evolving according to a deterministic drift and randomly forced by two types of jumps processes, one representing an external, uncontrolled forcing and the other one a control that instantaneously…

Statistical Mechanics · Physics 2019-10-30 Mark S. Bartlett Amilcare Porporato Lamberto Rondoni

We study stochastic differential equations with jumps with no diffusion part. We provide some basic stochastic characterizations of solutions of the corresponding non-local partial differential equations and prove the Harnack inequality for…

Probability · Mathematics 2015-10-06 Ari Arapostathis , Anup Biswas , Luis Caffarelli

Markovian diffusion processes yield a system of conservation laws which couple various conditional expectation values (local moments). Solutions of that closed system of deterministic partial differential equations stand for a regular…

Statistical Mechanics · Physics 2007-05-23 P. Garbaczewski