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Related papers: A conformal Skorokhod embedding

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The Skorokhod Embedding problem is well understood when the underlying process is a Brownian motion. We examine the problem when the underlying is the simple symmetric random walk and when no external randomisation is allowed. We prove that…

Probability · Mathematics 2007-05-23 Alexander M. G. Cox , Jan Obloj

We consider the Skorokhod problem in a time-varying interval. We prove existence and uniqueness for the solution. We also express the solution in terms of an explicit formula. Moving boundaries may generate singularities when they touch. We…

Probability · Mathematics 2007-12-19 Krzysztof Burdzy , Weining Kang , Kavita Ramanan

The Skorokhod embedding problem is to represent a given probability as the distribution of Brownian motion at a chosen stopping time. Over the last 50 years this has become one of the important classical problems in probability theory and a…

Probability · Mathematics 2016-05-16 Mathias Beiglboeck , Alexander M. G. Cox , Martin Huesmann

In this paper we consider the Skorokhod embedding problem for target distributions with non-zero mean. In the zero-mean case, uniform integrability provides a natural restriction on the class of embeddings, but this is no longer suitable…

Probability · Mathematics 2007-05-23 Alexander Cox , David Hobson

We provide a new probabilistic proof of the connection between Rost's solution of the Skorokhod embedding problem and a suitable family of optimal stopping problems for Brownian motion with finite time-horizon. In particular we use…

Probability · Mathematics 2017-01-10 Tiziano De Angelis

In this paper we consider the Skorokhod embedding problem in Brownian motion. In particular, we give a solution based on the local time at zero of a variably skewed Brownian motion related to the underlying Brownian motion. Special cases of…

Probability · Mathematics 2007-05-23 A. M. G. Cox , D. G. Hobson

The Skorokhod embedding problem aims to represent a given probability measure on the real line as the distribution of Brownian motion stopped at a chosen stopping time. In this paper, we consider an extension of the optimal Skorokhod…

Probability · Mathematics 2016-08-04 Gaoyue Guo , Xiaolu Tan , Nizar Touzi

In this paper we consider a connection between the famous Skorohod embedding problem and the Shiryaev inverse problem for the first hitting time distribution of a Brownian motion: given a probability distribution, $F$, find a boundary such…

Probability · Mathematics 2011-11-01 Sebastian Jaimungal , Alexander Kreinin , Angel Valov

We solve the Skorokhod embedding problem (SEP) for a general time-homogeneous diffusion $X$: given a distribution $\rho$, we construct a stopping time $\tau$ such that the stopped process $X_{\tau}$ has the distribution $\rho$. Our solution…

Probability · Mathematics 2015-06-02 Stefan Ankirchner , David Hobson , Philipp Strack

The classical Skorokhod embedding problem for a Brownian motion $W$ asks to find a stopping time $\tau$ so that $W_\tau$ is distributed according to a prescribed probability distribution $\mu$. Many solutions have been proposed during the…

Probability · Mathematics 2019-08-01 Leif Doering , Lukas Gonon , David J. Prömel , Oleg Reichmann

We study the problem of stopping a Brownian motion at a given distribution $\nu$ while optimizing a reward function that depends on the (possibly randomized) stopping time and the Brownian motion. Our first result establishes that the set…

Probability · Mathematics 2020-04-15 Mathias Beiglböck , Marcel Nutz , Florian Stebegg

Motivated by problems in behavioural finance, we provide two explicit constructions of a randomized stopping time which embeds a given centered distribution $\mu$ on integers into a simple symmetric random walk in a uniformly integrable…

Probability · Mathematics 2018-09-28 Xuedong He , Sang Hu , Jan Obłój , Xunyu Zhou

We show an intimate connection between solutions of the Skorokhod Embedding Problem which are given as the first hitting time of a barrier and the concept of shadows in martingale optimal transport. More precisely, we show that a solution…

Probability · Mathematics 2021-03-08 Martin Brückerhoff , Martin Huesmann

One of aims of this note is to capture the interest of the mathematical community to a novel transformation, which we shall call Brownian symmetrization. This transformation arises from the solution of the planar Skorokhod embedding…

Probability · Mathematics 2024-02-29 Maher Boudabra , Kais Hamza

We derive a nonlinear integral equation to calculate Root's solution of the Skorokhod embedding problem for atom-free target measures. We then use this to efficiently generate bounded time-space increments of Brownian motion and give a…

Probability · Mathematics 2016-08-11 Paul Gassiat , Aleksandar Mijatović , Harald Oberhauser

Recent work of Dupire and Carr and Lee has highlighted the importance of understanding the Skorokhod embedding originally proposed by Root for the model-independent hedging of variance options. Root's work shows that there exists a barrier…

Pricing of Securities · Quantitative Finance 2013-03-13 Alexander M. G. Cox , Jiajie Wang

We show that the barrier function in Root's solution to the Skorokhod embedding problem is continuous and finite at every point where the target measure has no atom and its absolutely continuous part is locally bounded away from zero.

Probability · Mathematics 2021-07-12 Erhan Bayraktar , Thomas Bernhardt

The present paper is devoted to a systematic study of the $p$-Brownian convergence introduced in \cite{boudabra2026stability} (in press) to study the stability of the planar Skorokhod embedding problem \cite{gross2019,Boudabra2020}. The…

Probability · Mathematics 2026-05-26 Maher Boudabra

The conformal Skorokhod embedding problem (CSEP) is a planar variant of the classical problem where the solution is now a simply connected domain $D\subset\mathbb{C}$ whose exit time embeds a given probability distribution $\mu$ by…

Probability · Mathematics 2020-06-03 Phanuel Mariano , Hugo Panzo

Strong approximations of uniform transport processes to the standard Brownian motion rely on the Skorokhod embedding of random walk with centered double exponential increments. In this note we make such an embedding explicit by means of a…

Probability · Mathematics 2020-02-04 Giang T. Nguyen , Oscar Peralta
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