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The main purpose of this work is the derivation of a functional partial differential equation (FPDE) for the calculations of equity-linked insurance policies, where the payment stream may depend on the whole past history of the financial…

Pricing of Securities · Quantitative Finance 2024-09-04 David R. Baños , Salvador Ortiz-Latorre , Oriol Zamora Font

A variational Perturbation theory based on the functional integral approach is formulated for many-particle systems. Using the variational action obtained through Jensen-Peierls' inequality, a perturbative expansion scheme for the…

Strongly Correlated Electrons · Physics 2009-10-31 Sang Koo You , Chul Koo Kim , Kyun Nahm , Hyun Sik Noh

We study the asymptotic behaviour of a properly normalized time-changed multidimensional Wiener process; the time change is given by an additive functional of the Wiener process itself. At the level of generators, the time change means that…

Probability · Mathematics 2025-01-22 Yuliia Mishura , René L. Schilling

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

We prove an It\^o-Wentzell formula for the fractional Brownian motion. As an application we derive an existence and uniqueness result for a class of stochastic differential equations driven by this stochastic process.

Probability · Mathematics 2024-11-19 Luís Maia

We construct a family $I_{n_{\eps}}(f)_{t}$ of continuous stochastic processes that converges in the sense of finite dimensional distributions to a multiple Wiener-It\^o integral $I_{n}^{H}(f1^{\otimes n}_{[0,t]})$ with respect to the…

Probability · Mathematics 2010-09-17 Xavier Bardina , Khalifa Es-Sebaiy , Ciprian Tudor

This paper develops the so-called Weighted Energy-Dissipation (WED) variational approach for the analysis of gradient flows in metric spaces. This focuses on the minimization of the parameter-dependent global-in-time functional of…

Analysis of PDEs · Mathematics 2018-01-17 Riccarda Rossi , Giuseppe Savaré , Antonio Segatti , Ulisse Stefanelli

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 present an innovating sensitivity analysis for stochastic differential equations: We study the sensitivity, when the Hurst parameter~$H$ of the driving fractional Brownian motion tends to the pure Brownian value, of probability…

Probability · Mathematics 2017-02-14 Alexandre Richard , Denis Talay

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

This paper presents a new approach to the analysis of mixed processes \[X_t=B_t+G_t,\qquad t\in[0,T],\] where $B_t$ is a Brownian motion and $G_t$ is an independent centered Gaussian process. We obtain a new canonical innovation…

Probability · Mathematics 2016-09-05 Chunhao Cai , Pavel Chigansky , Marina Kleptsyna

This paper develops an It\^o-type fractional pathwise integration theory for fractional Brownian motion with Hurst parameters \( H \in (\frac{1}{3}, \frac{1}{2}] \), using the Lyons' rough path framework. This approach is designed to fill…

Probability · Mathematics 2025-11-10 Zhongmin Qian , Xingcheng Xu

In this article, we develop a semigroup-theoretic framework for the analytic characterisation of martingales with path-dependent terminal conditions. Our main result establishes that a measurable adapted process of the form \[ V(t) -…

Probability · Mathematics 2025-07-03 Robert Denk , Markus Kunze , Michael Kupper

In this article we will present a new perspective on the variable order fractional calculus, which allows for differentiation and integration to a variable order, i.e. one differentiates (or integrates) a function along the path of a…

Probability · Mathematics 2018-08-31 Fabian Harang , Torstein Nilssen , Frank Proske

We characterize the asymptotic behaviour of the weighted power variation processes associated with iterated Brownian motion. We prove weak convergence results in the sense of finite dimensional distributions, and show that the laws of the…

Probability · Mathematics 2008-06-15 Ivan Nourdin , Giovanni Peccati

A variational framework is defined for vertical slice models with three dimensional velocity depending only on x and z. The models that result from this framework are Hamiltonian, and have a Kelvin-Noether circulation theorem that results…

Dynamical Systems · Mathematics 2015-06-12 C. J. Cotter , D. D. Holm

We consider continuous-time diffusion models driven by fractional Brownian motion. Observations are assumed to possess a non-trivial likelihood given the latent path. Due to the non-Markovianity and high-dimensionality of the latent paths,…

Methodology · Statistics 2015-03-25 Alexandros Beskos , Joseph Dureau , Konstantinos Kalogeropoulos

We develop a calculus of variations for functionals which are defined on a set of non differentiable curves. We first extend the classical differential calculus in a quantum calculus, which allows us to define a complex operator, called the…

General Mathematics · Mathematics 2015-06-26 Jacky Cresson

The present paper continues the study of infinite dimensional calculus via regularization, started by C. Di Girolami and the second named author, introducing the notion of weak Dirichlet process in this context. Such a process X, taking…

Probability · Mathematics 2016-06-14 Giorgio Fabbri , Francesco Russo

We introduce the notion of {\em covariance measure structure} for square integrable stochastic processes. We define Wiener integral, we develop a suitable formalism for stochastic calculus of variations and we make Gaussian assumptions only…

Probability · Mathematics 2007-05-23 Ida Kruk , Francesco Russo , Ciprian Tudor