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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

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

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 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

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

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

The Skorokhod embedding problem (SEP) is to represent a given probability measure as a Brownian motion $B$ at a particular stopping time. In recent years particular attention has gone to solutions which exhibit additional optimality…

Probability · Mathematics 2023-07-10 Annemarie Grass

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

Given a Brownian motion $B_t$ and a general target law $\mu$ (not necessarily centered or even integrable) we show how to construct an embedding of $\mu$ in $B$. This embedding is an extension of an embedding due to Perkins, and is optimal…

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

We solve the Skorokhod embedding problem for a class of Gaussian processes including Brownian motion with non-linear drift. Our approach relies on solving an associated strongly coupled system of Forward Backward Stochastic Differential…

Probability · Mathematics 2015-12-17 Alexander Fromm , Peter Imkeller , David J. Prömel

We study a discrete time approximation scheme for the solution of a doubly reflected Backward Stochastic Differential Equation (DBBSDE in short) with jumps, driven by a Brownian motion and an independent compensated Poisson process.…

Probability · Mathematics 2016-12-14 Roxana Dumitrescu , Céline Labart

We develop an explicit non-randomized solution to the Skorokhod embedding problem in an abstract setup of signed functionals of Markovian excursions. Our setting allows to solve the Skorokhod embedding problem, in particular, for diffusions…

Probability · Mathematics 2007-05-23 Jan Obloj

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

We consider a two-speed branching random walk, which consists of two macroscopic stages with different reproduction laws. We prove that the centered maximum converges in law to a Gumbel variable with a random shift and the extremal process…

Probability · Mathematics 2025-03-11 Lianghui Luo

We introduce a discrete time reflected scheme to solve doubly reflected Backward Stochastic Differential Equations with jumps (in short DRBSDEs), driven by a Brownian motion and an independent compensated Poisson process. As in…

Probability · Mathematics 2015-11-11 Roxana Dumitrescu , Céline Labart

We introduce a technique to merge two biased Brownian motions into a single regular process. The outcome follows a stochastic differential equation with a constant diffusion coefficient and a non-linear drift. The emerging stochastic…

Probability · Mathematics 2023-04-03 Miquel Montero

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

We consider cost minimizing stopping time solutions to Skorokhod embedding problems, which deal with transporting a source probability measure to a given target measure through a stopped Brownian process. PDEs and a free boundary problem…

Analysis of PDEs · Mathematics 2019-03-19 Nassif Ghoussoub , Young-Heon Kim , Aaron Zeff Palmer

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

Start a planar Brownian motion and let it run until it hits some given barrier. We show that the barrier may be crafted so that the x coordinate at the hitting time has any prescribed centered distribution with finite variance. This…

Probability · Mathematics 2019-05-03 Renan Gross
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