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A refracted L\'evy process is a L\'evy process whose dynamics change by subtracting off a fixed linear drift (of suitable size) whenever the aggregate process is above a pre-specified level. More precisely, whenever it exists, a refracted…

Probability · Mathematics 2012-05-04 Andreas E. Kyprianou , J. C. Pardo , J. L. Pérez

We consider the optimal prediction problem of stopping a spectrally negative L\'evy process as close as possible to a given distance $b \geq 0$ from its ultimate supremum, under a squared error penalty function. Under some mild conditions,…

Probability · Mathematics 2020-08-04 Mónica B. Carvajal Pinto , Kees van Schaik

In this paper we consider the distribution of the location of the path supremum in a fixed interval for self-similar processes with stationary increments. To this end, a point process is constructed and its relation to the distribution of…

Probability · Mathematics 2016-05-24 Yi Shen

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 spectrally negative L\'evy process $X$, we study the following distribution: $$ \mathbb{E}_x \left[ \mathrm{e}^{- q \int_0^t \mathbf{1}_{(a,b)} (X_s) \mathrm{d}s } ; X_t \in \mathrm{d}y \right], $$ where $-\infty \leq a < b < \infty$,…

Probability · Mathematics 2014-06-13 Hélène Guérin , Jean-François Renaud

The running infimum of a Levy process relative to its point of issue is know to have the same range that of the negative of a certain subordinator. Conditioning a Levy process issued from a strictly positive value to stay positive may…

Probability · Mathematics 2016-06-24 Andreas E. Kyprianou , Victor Rivero , Bati Sengul

We consider a spectrally positive L\'evy process $X$ that does not drift to $+\infty$, viewed as coding for the genealogical structure of a (sub)critical branching process, in the sense of a contour or exploration process…

Probability · Mathematics 2017-08-25 Miraine Dávila Felipe , Amaury Lambert

In this paper, we analyse some equity-linked contracts that are related to drawdown and drawup events based on assets governed by a geometric spectrally negative L\'evy process. Drawdown and drawup refer to the differences between the…

Pricing of Securities · Quantitative Finance 2018-02-20 Zbigniew Palmowski , Joanna Tumilewicz

The existence of moments of first downward passage times of a spectrally negative L\'evy process is governed by the general dynamics of the L\'evy process, i.e. whether the L\'evy process is drifting to $+\infty$, $-\infty$ or oscillates.…

Probability · Mathematics 2022-08-02 Anita Behme , Philipp Lukas Strietzel

We consider a L\'evy process that starts from $x<0$ and conditioned on having a positive maximum. When Cram\'er's condition holds, we provide two weak limit theorems as $x\to -\infty$ for the law of the (two-sided) path shifted at the first…

Probability · Mathematics 2011-04-26 Matyas Barczy , Jean Bertoin

By killing a stable L\'{e}vy process when it leaves the positive half-line, or by conditioning it to stay positive, or by conditioning it to hit 0 continuously, we obtain three different positive self-similar Markov processes which…

Probability · Mathematics 2016-08-16 Maria Emilia Caballero , Loïc Chaumont

For a L\'evy process $X$ on a finite time interval consider the probability that it exceeds some fixed threshold $x>0$ while staying below $x$ at the points of a regular grid. We establish exact asymptotic behavior of this probability as…

Probability · Mathematics 2022-01-05 Krzysztof Bisewski , Jevgenijs Ivanovs

In this article we derive formulas for the probability $P(\sup_{t\leq T} X(t)>u)$ $T>0$ and $P(\sup_{t<\infty} X(t)>u)$ where $X$ is a spectrally positive L\'evy process with infinite variation. The formulas are generalizations of the…

Probability · Mathematics 2014-10-20 Zbigniew Michna , Zbigniew Palmowski , Martijn Pistorius

This paper provides a multivariate extension of Bertoin's pathwise construction of a L\'evy process conditioned to stay positive/negative. Thus obtained processes conditioned to stay in half-spaces are closely related to the original…

Probability · Mathematics 2021-05-27 Jevgenijs Ivanovs , Jakob D. Thøstesen

In this paper we present the distribution of the maximum of the telegraph process in the cases where the initial velocity is positive or negative with an even and an odd number of velocity reversals. For the telegraph process with positive…

Probability · Mathematics 2020-03-10 Fabrizio Cinque , Enzo Orsingher

In the present work, we consider spectrally positive L\'evy processes $(X_t,t\geq0)$ not drifting to $+\infty$ and we are interested in conditioning these processes to reach arbitrarily large heights (in the sense of the height process…

Probability · Mathematics 2012-03-21 Mathieu Richard

We discuss an impact of various (path-wise) reflection-from-the barrier scenarios upon confining properties of a paradigmatic family of symmetric $\alpha $-stable L\'{e}vy processes, whose permanent residence in a finite interval on a line…

Statistical Mechanics · Physics 2022-07-19 Piotr Garbaczewski , Mariusz Żaba

Motivated by the recent results of Nualart and Xu \cite{Nualart} concerning limits laws for occupation times of one dimensional symmetric stable processes, this paper proves a decomposition for functionals of one dimensional symmetric…

Probability · Mathematics 2014-10-07 Luis Acuna Valverde

For L\'evy processes with exponentially decaying tails of the L\'evy density, we derive integral representations for the joint cpdf $V$ of $(X_T, \bar X_T,\tau_T)$ (the process, its supremum evaluated at $T<+\infty$, and the first time at…

Probability · Mathematics 2023-12-11 Svetlana Boyarchenko , Sergei Levendorskii

Integral representations for expectations of functions of a stable L\'evy process $X$ and its supremum $\bar X$ are derived. As examples, cumulative probability distribution functions (cpdf) of $X_T, \barX_T$, the joint cpdf of $X_T$ and…

Probability · Mathematics 2022-09-27 Svetlana Boyarchenko , Sergei Levendorskiĭ