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Within a path integral formalism for non-Gaussian price fluctuations we set up a simple stochastic calculus and derive a natural martingale for option pricing from the wealth balance of options, stocks, and bonds. The resulting formula is…

Condensed Matter · Physics 2015-06-24 Hagen Kleinert

In the present paper, we consider multidimensional nonlinear backward stochastic differential equations (BSDEs) with a driver depending on the martingale part $M$ of a solution. We assume that the nonlinear term is merely monotone…

Probability · Mathematics 2023-08-22 Tomasz Klimsiak , Maurycy Rzymowski

In this paper, we provide strong $L_2$-rates of approximation of the integral-type functionals of Markov processes by integral sums. We improve the method developed in [2]. Under assumptions on the process formulated only in terms of its…

Probability · Mathematics 2015-08-13 Iurii Ganychenko

The paper suggests a way of stochastic integration of random integrands with respect to fractional Brownian motion with the Hurst parameter H> 1/2. The integral is defined initially on the processes that are "piecewise" predictable on a…

Probability · Mathematics 2020-04-21 Nikolai Dokuchaev

We prove optimal ${L}^2$ bounds for a pair of Hilbert space valued differentially subordinate martingales under a change of law. The change of law is given by a process called a weight and sharpness in this context refers to the optimal…

Probability · Mathematics 2016-11-22 Komla Domelevo , Stefanie Petermichl

We propose an algebraic method for proving estimates on moments of stochastic integrals. The method uses qualitative properties of roots of algebraic polynomials from certain general classes. As an application, we give a new proof of a…

Probability · Mathematics 2013-12-02 Mikhail A. Langovoy

In this paper we consider the three-dimensional compressible MHD system with stochastic external forces in a bounded domain. We obtain the existence of martingale solution which is a weak solution for the fluid variables, the Brownian…

Analysis of PDEs · Mathematics 2024-09-19 Huaqiao Wang

We obtain a sharp $L^2\times L^2 \to L^1$ boundedness criterion for a class of bilinear operators associated with a multiplier given by a signed sum of dyadic dilations of a given function, in terms of the $L^q$ integrability of this…

Classical Analysis and ODEs · Mathematics 2018-02-27 Loukas Grafakos , Danqing He , Lenka Slavíková

The $X^{s,b}$ spaces, as used by Beals, Bourgain, Kenig-Ponce-Vega, Klainerman-Machedon and others, are fundamental tools to study the low-regularity behaviour of non-linear dispersive equations. It is of particular interest to obtain…

Analysis of PDEs · Mathematics 2007-05-23 Terence Tao

We establish a local martingale $M$ associate with $f(X,Y)$ under some restrictions on $f$, where $Y$ is a process of bounded variation (on compact intervals) and either $X$ is a jump diffusion (a special case being a L\'evy process) or $X$…

Probability · Mathematics 2017-11-22 Offer Kella , Marc Yor

Various approaches to stochastic processes exist, noting that key properties such as measurability and continuity are not trivially satisfied. We introduce a new theory for Gaussian processes using improper linear functionals. Using a…

Statistics Theory · Mathematics 2020-10-15 Niels Lundtorp Olsen

The main aspiration of this note is to construct several different Haar-type systems in euclidean spaces of higher dimensions and prove sharp Lp bounds for the corresponding martingale transforms. In dimension one this was a result of…

Functional Analysis · Mathematics 2007-05-23 Oliver Dragicevic , Stefanie Petermichl , Alexander Volberg

Let $L_{q,\mu}$, $1\leq q\leq\infty$, denotes the weighted $L_q$ space of functions on the unit ball $\Bbb B^d$ with respect to weight $(1-\|x\|_2^2)^{\mu-\frac12},\,\mu\ge 0$, and let $W_{2,\mu}^r$ be the weighted Sobolev space on $\Bbb…

Classical Analysis and ODEs · Mathematics 2016-03-16 Heping Wang

In this article we introduce the fractional Hardy-Littlewood maximal function on the infinite rooted $k$-ary tree and study its weighted boundedness. We also provide examples of weights for which the fractional Hardy-Littlewood maximal…

Classical Analysis and ODEs · Mathematics 2021-12-13 Abhishek Ghosh , Ezequiel Rela

In this paper we will establish necessary and sufficient conditions for a Laplace-Carleson embedding to be bounded for certain spaces of functions on the positive half-line. We will use these results to characterise weighted (infinite-time)…

Optimization and Control · Mathematics 2017-05-30 Andrzej Kucik

We study necessary and sufficient conditions for a Muckenhoupt weight $w \in L^1_{\mathrm{loc}}(\mathbb R^d)$ that yield almost sure existence of radial, and vertical, limits at infinity for Sobolev functions $u \in…

Analysis of PDEs · Mathematics 2022-01-27 Sylvester Eriksson-Bique , Khanh Nguyen , Pekka Koskela

We develop the functional It\^o/path-dependent calculus with respect to fractional Brownian motion with Hurst parameter $H> \frac{1}{2}$. Firstly, two types of integrals are studied. The first type is Stratonovich integral, and the second…

Probability · Mathematics 2016-08-04 Jiaqiang Wen , Yufeng Shi

This work considers a stochastic model in which the uncertainty is driven by a multidimensional Brownian motion. The market price of risk process makes the transition between real world probability measure and risk neutral probability…

Probability · Mathematics 2017-10-04 Traian A. Pirvu , Ulrich G. Haussmann

The $k$-Cauchy-Fueter operators, $k=0,1,\ldots$, are quaternionic counterparts of the Cauchy-Riemann operator in the theory of several complex variables. The weighted $L^2$ method to solve Cauchy-Riemann equation is applied to find the…

Complex Variables · Mathematics 2017-04-11 Wei Wang

This paper is concerned with a stochastic linear quadratic (LQ, for short) control problem with a recursive cost functional in an infinite horizon. A main difficult is well-posedness of the BSDE in $L^1$ and in infinite horizon. A notion of…

Optimization and Control · Mathematics 2026-05-07 Lin Li , Jiongmin Yong