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We extend the It\=o formula \cite{MR1837298}*{Theorem 2.3} for semimartingales with rcll paths. We also comment on Local time process of such semimartingales. We apply the It\=o formula to L\'evy processes to obtain existence of solutions…

Probability · Mathematics 2016-09-23 Suprio Bhar

Path dependence is omnipresent in many disciplines such as engineering, system theory and finance. It reflects the influence of the past on the future, often expressed through functionals. However, non-Markovian problems are often…

Mathematical Finance · Quantitative Finance 2023-03-03 Bruno Dupire , Valentin Tissot-Daguette

A consistent functional calculus approach to the spectral theorem for strongly commuting normal operators on Hilbert spaces is presented. In contrast to the common approaches using projection-valued measures or multiplication operators,…

Functional Analysis · Mathematics 2020-09-28 Markus Haase

We consider versions of Malliavin calculus on path spaces of compact manifolds with diffusion measures, defining Gross-Sobolev spaces of differentiable functions and proving their intertwining with solution maps, I, of certain stochastic…

Probability · Mathematics 2016-11-14 K. D. Elworthy , Xue-Mei Li

We derive a functional It\^o-formula for non-anticipative maps of rough paths, based on the approximation properties of the signature of c\`adl\`ag rough paths. This result is a functional extension of the It\^o-formula for c\`adl\`ag rough…

Probability · Mathematics 2025-04-09 Christa Cuchiero , Xin Guo , Francesca Primavera

The paper reminds the basic ideas of stochastic calculus via regularizations in Banach spaces and its applications to the study of strict solutions of Kolmogorov path dependent equations associated with "windows" of diffusion processes. One…

Probability · Mathematics 2014-12-01 Andrea Cosso , Cristina Di Girolami , Francesco Russo

Using Dupire's notion of vertical derivative, we provide a functional (path-dependent) extension of the It\^o's formula of Gozzi and Russo (2006) that applies to C^{0,1}-functions of continuous weak Dirichlet processes. It is motivated and…

Probability · Mathematics 2021-01-12 Bruno Bouchard , Grégoire Loeper , Xiaolu Tan

Extending It\^o's formula to non-smooth functions is important both in theory and applications. One of the fairly general extensions of the formula, known as Meyer-It\^o, applies to one dimensional semimartingales and convex functions.…

Mathematical Finance · Quantitative Finance 2015-07-02 Ramin Okhrati , Uwe Schmock

We prove It{\^o}'s formula for the flow of measures associated with an It{\^o} process having a bounded drift and a uniformly elliptic and bounded diffusion matrix, and for functions in an appropriate Sobolev-type space. This formula is the…

Probability · Mathematics 2022-11-09 Thomas Cavallazzi

We derive It\^o-type change of variable formulas for smooth functionals of irregular paths with non-zero $p-$th variation along a sequence of partitions where $p \geq 1$ is arbitrary, in terms of fractional derivative operators, extending…

Classical Analysis and ODEs · Mathematics 2021-11-30 Rama Cont , Ruhong Jin

Functional integrals are central to modern theories ranging from quantum mechanics and statistical thermodynamics to biology, chemistry, and finance. In this work we present a new method for calculating functional integrals based on a…

Mathematical Physics · Physics 2023-09-22 Amos A. Hari , Sefi Givli

Several versions of It\^{o}'s formula have been obtained in the setting of the functional stochastic calculus. In this regard, we present a local time-space version that works for arbitrary bounded and continuous functionals of L\'{e}vy…

Probability · Mathematics 2024-06-04 Christian Houdré , Jorge Víquez

This paper is concerned with the It\^o stochastic differential equations with $\mR^{d\times k}$ diffusions in class of H\"older spaces and continuous $\mR^d$ drifts. We derive a uniqueness result of strong solutions for $\cC^\alpha \…

Analysis of PDEs · Mathematics 2025-07-21 Rongrong Tian , Shuheng Tu , Jinlong Wei

We consider autonomous stochastic ordinary differential equations (SDEs) and weak approximations of their solutions for a general class of sufficiently smooth path-dependent functionals f. Based on tools from functional It\^o calculus, such…

Probability · Mathematics 2016-06-15 Mihály Kovács , Felix Lindner

We construct a pathwise calculus for functionals of integer-valued measures and use it to derive an martingale representation formula with respect to a large class of integer-valued random measures. Using these results, we extend the…

Probability · Mathematics 2020-02-28 Pierre M. Blacque-Florentin , Rama Cont

K. It\^{o} characterised in \cite{ito} zero-mean stationary Gauss Markov-processes evolving on a class of infinite-dimensional spaces. In this work we extend the work of It\^{o} in the case of Hilbert spaces: Gauss-Markov families that are…

Probability · Mathematics 2013-07-11 Ben Goldys , Szymon Peszat , Jerzy Zabczyk

A rigorous derivation is provided for canonical correlations and partial canonical correlations for certain Hilbert space indexed stochastic processes. The formulation relies on a key congruence mapping between the space spanned by a second…

Statistics Theory · Mathematics 2015-06-02 Qing Huang , Rosemary Renaut

We study It\^o SDE systems driven by oscillating functions of a single It\^o diffusion process. In the limit when oscillations become fast, we show that the solution process converges in law to the process defined by an SDE system driven by…

Probability · Mathematics 2026-05-26 Tanner Reese , Jan Wehr

We extend some results about F\"ollmer's pathwise It\^o calculus that have only been derived for continuous paths to c\`adl\`ag paths with quadratic variation. We study some fundamental properties of pathwise It\^o integrals with respect to…

Probability · Mathematics 2017-10-17 Yuki Hirai

We consider a stochastic Volterra integral equation with regular path-dependent coefficients and a Brownian motion as integrator in a multidimensional setting. Under an imposed absolute continuity condition, the unique solution is a…

Probability · Mathematics 2021-03-29 Alexander Kalinin