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We provide analytical tools for pricing power options with exotic features (capped or log payoffs, gap options ...) in the framework of exponential L\'evy models driven by one-sided stable or tempered stable processes. Pricing formulas take…

Pricing of Securities · Quantitative Finance 2021-01-20 Jean-Philippe Aguilar

We establish distributional limit theorems for the shape statistics of a concave majorant (i.e. the fluctuations of its length, its supremum, the time it is attained and its value at $T$) of any L\'evy process on $[0,T]$ as $T\to\infty$.…

Probability · Mathematics 2023-11-20 David Bang , Jorge Ignacio González Cázares , Aleksandar Mijatović

We show the existence of L\'evy-type stochastic processes in one space dimension with characteristic triplets that are either discontinuous at thresholds, or are stable-like with stability index functions for which the closures of the…

Probability · Mathematics 2012-08-09 Peter Imkeller , Niklas Willrich

The Lamperti correspondence gives a prominent role to two random time changes: the exponential functional of a L\'evy process drifting to $\infty$ and its inverse, the clock of the corresponding positive self-similar process. We describe…

Probability · Mathematics 2014-11-21 Alain Rouault , Nizar Demni , Marguerite Zani

For a (killed) spectrally negative L\'evy process we provide an analytic expression for the distribution of its overshoot over a fixed level in terms of the infinitesimal generator and the scale function of the process. Our identity…

Probability · Mathematics 2015-05-19 Ronnie Loeffen

For $n$ equidistant observations of a L\'evy process at time distance $\Delta_n$ we consider the problem of testing hypotheses on the volatility, the jump measure and its Blumenthal-Getoor index in a non- or semiparametric manner.…

Statistics Theory · Mathematics 2013-04-05 Markus Reiß

In this paper, we consider a class of generalized continuous-state branching processes obtained by Lamperti type time changes of spectrally positive L\'evy processes using different rate functions. When explosion occurs to such a process,…

Probability · Mathematics 2020-12-29 Bo Li , Xiaowen Zhou

Given a spectrally negative L\'evy process $X$ drifting to infinity, (inspired on the early ideas of Shiryaev (2002)) we are interested in finding a stopping time that minimises the $L^p$ distance ($p>1$) with $g$, the last time $X$ is…

Probability · Mathematics 2023-04-05 Erik J. Baurdoux , J. M. Pedraza

Intermittent demand fluctuations pose significant challenges in disaster logistics and medical supply systems. In this study, we formulate cumulative demand as a generalized L\'evy process composed of a drift term, Poisson jumps, and…

Probability · Mathematics 2026-03-04 Ryoya Koide

In this paper, we study a multivariate version of the generalized counting process (GCP) and discuss its various time-changed variants. The time is changed using random processes such as the stable subordinator, inverse stable subordinator,…

Probability · Mathematics 2025-09-30 K. K. Kataria , M. Dhillon

We consider the three dimensional incompressible Navier-Stokes equations with non stationary source terms f chosen in a suitable space. We prove the existence of Leray-Hopf weak solutions and that it is possible to characterize (up to…

Analysis of PDEs · Mathematics 2020-01-08 Luigi C. Berselli , Roger Lewandowski

We develop a method that relates the truncated cumulant-function of the fourth order with the L\'evian cumulant-function. This gives us explicit formulas for the L\'evy-parameters, which allow a real-time analysis of the state of a…

Statistical Mechanics · Physics 2019-12-04 Alexander Jurisch

We consider the first exit time of a Shiryaev-Roberts diffusion with constant positive drift from the interval $[0,A]$ where $A>0$. We show that the moment generating function (Laplace transform) of a suitably standardized version of the…

Methodology · Statistics 2017-03-07 Aleksey S. Polunchenko

This paper considers a L\'evy-driven queue (i.e., a L\'evy process reflected at 0), and focuses on the distribution of $M(t)$, that is, the minimal value attained in an interval of length $t$ (where it is assumed that the queue is in…

Probability · Mathematics 2012-01-10 Krzysztof Debicki , Kamil Marcin Kosinski , Michel Mandjes

Previous authors have considered optimal stopping problems driven by the running maximum of a spectrally negative L\'evy process $X$, as well as of a one-dimensional diffusion. Many of the aforementioned results are either implicitly or…

Probability · Mathematics 2021-06-25 Mine Caglar , Andreas E. Kyprianou , Ceren Vardar-Acar

For a generic class of machines with broken time-reversal symmetry we show that in the linear response regime the relative fluctuation of the sum of output currents for time-forward and time-reversed processes is always lower bounded by the…

Statistical Mechanics · Physics 2021-10-12 Sushant Saryal , Sandipan Mohanta , Bijay Kumar Agarwalla

The field of risk theory has traditionally focused on ruin-related quantities. In particular, the socalled Expected Discounted Penalty Function has been the object of a thorough study over the years. Although interesting in their own right,…

Risk Management · Quantitative Finance 2014-06-27 Zied Ben-Salah , Hélène Guérin , Manuel Morales , Hassan Omidi Firouzi

We characterize the small-time asymptotic behavior of the exit probability of a L\'evy process out of a two-sided interval and of the law of its overshoot, conditionally on the terminal value of the process. The asymptotic expansions are…

Probability · Mathematics 2014-07-23 José E. Figueroa-López , Peter Tankov

We study the exit time from a bounded multi-dimensional domain $\Omega$ of the stochastic process $\mathbf{Y}_\varepsilon=\mathbf{Y}_\varepsilon(t,a)$, $t\geqslant 0$, $a\in \mathcal{A}$, governed by the overdamped Langevin dynamics…

Analysis of PDEs · Mathematics 2019-06-12 D. Borisov , O. Sultanov

Stochastic biochemical and transport processes have various final outcomes, and they can be viewed as dynamic systems with multiple exits. Many current theoretical studies, however, typically consider only a single time scale for each…

Statistical Mechanics · Physics 2020-08-26 Golan Bel , Anton Zilman , Anatoly B. Kolomeisky