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We consider the problem of optimally stopping a general one-dimensional stochastic differential equation (SDE) with generalised drift over an infinite time horizon. First, we derive a complete characterisation of the solution to this…

Probability · Mathematics 2019-09-26 Mihail Zervos , Neofytos Rodosthenous , Pui Chan Lon , Thomas Bernhardt

In this work we derive global estimates for viscosity solutions to fully nonlinear elliptic equations under relaxed structural assumptions on the governing operator which are weaker than convexity and oblique boundary conditions and under…

Analysis of PDEs · Mathematics 2023-06-02 Junior da S. Bessa , João Vitor da Silva , Maria N. B. Frederico , Gleydson C. Ricarte

The question of pricing and hedging a given contingent claim has a unique solution in a complete market framework. When some incompleteness is introduced, the problem becomes however more difficult. Several approaches have been adopted in…

Probability · Mathematics 2007-08-08 Pauline Barrieu , Nicole El Karoui

We study a financial model with a non-trivial price impact effect. In this model we consider the interaction of a large investor trading in an illiquid security, and a market maker who is quoting prices for this security. We assume that the…

Pricing of Securities · Quantitative Finance 2009-10-20 David German

Statistical inferences for high-dimensional regression models have been extensively studied for their wide applications ranging from genomics, neuroscience, to economics. However, in practice, there are often potential unmeasured…

Methodology · Statistics 2023-09-12 Jing Ouyang , Kean Ming Tan , Gongjun Xu

We consider a general class of regression models with normally distributed covariates, and the associated nonconvex problem of fitting these models from data. We develop a general recipe for analyzing the convergence of iterative algorithms…

Optimization and Control · Mathematics 2021-09-22 Kabir Aladin Chandrasekher , Ashwin Pananjady , Christos Thrampoulidis

Estimating market impact and transaction costs of large trades (metaorders) is a very important topic in finance. However, using models of price and trade based on public market data provide average price trajectories which are…

Trading and Market Microstructure · Quantitative Finance 2025-12-04 Manuel Naviglio , Giacomo Bormetti , Francesco Campigli , German Rodikov , Fabrizio Lillo

We explore the striking mathematical connections that exist between market scoring rules, cost function based prediction markets, and no-regret learning. We show that any cost function based prediction market can be interpreted as an…

Artificial Intelligence · Computer Science 2010-03-02 Yiling Chen , Jennifer Wortman Vaughan

This paper considers a class of stochastic control problems with implicitly defined objective functions, which are the sources of time-inconsistency. We study the closed-loop equilibrium solutions in a general controlled diffusion…

Optimization and Control · Mathematics 2023-12-29 Zongxia Liang , Jianming Xia , Keyu Zhang

In part II we constructed the lower bound, in the spirit of $\Gamma$- $\liminf$ for some general classes of singular perturbation problems, with or without the prescribed differential constraint, taking the form E_\e(v):=\int_\Omega…

Analysis of PDEs · Mathematics 2013-09-26 Arkady Poliakovsky

Double no-touch options, contracts which pay out a fixed amount provided an underlying asset remains within a given interval, are commonly traded, particularly in FX markets. In this work, we establish model-free bounds on the price of…

Pricing of Securities · Quantitative Finance 2009-01-07 Alexander M. G. Cox , Jan Obloj

The aim of this thesis is to derive new gradient estimates for parabolic equations. The gradient estimates found are independent of the regularity of the initial data. This allows us to prove the existence of solutions to problems that have…

Analysis of PDEs · Mathematics 2007-05-23 Julie Clutterbuck

We study contingent claims in a discrete-time market model where trading costs are given by convex functions and portfolios are constrained by convex sets. In addition to classical frictionless markets and markets with transaction costs or…

Pricing of Securities · Quantitative Finance 2008-12-10 Teemu Pennanen

We study risk-sharing equilibria with general convex costs on the agents' trading rates. For an infinite-horizon model with linear state dynamics and exogenous volatilities, we prove that the equilibrium returns mean-revert around their…

Mathematical Finance · Quantitative Finance 2020-04-16 Lukas Gonon , Johannes Muhle-Karbe , Xiaofei Shi

It was shown recently that the constraints on the initial data for Einstein's equations may be posed as an evolutionary problem [9]. In one of the proposed two methods the constraints can be replaced by a first order symmetrizable…

General Relativity and Quantum Cosmology · Physics 2016-02-09 István Rácz , Jeffrey Winicour

The article addresses the convergence of implicit and semi-implicit, fully discrete approximations of a class of nonlinear parabolic evolution problems. Such schemes are popular in the numerical solution of evolutions defined with the…

Numerical Analysis · Mathematics 2019-02-22 Sören Bartels , Michael Růžička

By introducing the notion of distributive constant for a family of closed subschemes, we establish a general form of the second main theorem for algebraic nondegenerate meromorphic mappings from a generalized $p$-Parabolic manifold into a…

Complex Variables · Mathematics 2026-02-17 Si Duc Quang

This paper completes the analysis of Choulli et al. Non-Arbitrage up to Random Horizons and after Honest Times for Semimartingale Models and contains two principal contributions. The first contribution consists in providing and analysing…

Probability · Mathematics 2013-12-10 Anna Aksamit , Tahir Choulli , Jun Deng , Monique Jeanblanc

We consider a quasi-linear parabolic equation with nonlinear dynamic boundary conditions occurring as a natural generalization of the semilinear reaction-diffusion equation with dynamic boundary conditions. The corresponding class of…

Dynamical Systems · Mathematics 2013-02-19 Ciprian G. Gal

We give a simplified presentation of the obstacle problem approach to stochastic homogenization for elliptic equations in nondivergence form. Our argument also applies to equations which depend on the gradient of the unknown function. In…

Analysis of PDEs · Mathematics 2012-09-24 Scott N. Armstrong , Charles K. Smart