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Related papers: It\^o Stochastic differentials

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We establish It\^o's formula along flows of probability measures associated with general semimartingales; this generalizes existing results for flows of measures on It\^o processes. Our approach is to first establish It\^o's formula for…

Probability · Mathematics 2022-09-20 Xin Guo , Huyên Pham , Xiaoli Wei

In this paper we discuss existence and uniqueness for a one-dimensional time inhomogeneous stochastic differential equation directed by an $\mathbb{F}$-semimartingale $M$ and a finite cubic variation process $\xi$ which has the structure…

Probability · Mathematics 2007-05-23 Rosanna Coviello , Francesco Russo

We present an alternative construction of the infinite dimensional It\^{o} integral with respect to a Hilbert space valued L\'{e}vy process. This approach is based on the well-known theory of real-valued stochastic integration, and the…

Probability · Mathematics 2025-11-21 Stefan Tappe

The purpose of this paper is two-fold. First is to extend the notions of an n-dimensional semimartingale and its stochastic integral to a piecewise semimartingale of stochastic dimension. The properties of the former carry over largely…

Pricing of Securities · Quantitative Finance 2011-12-23 Winslow Strong

Using time-reversal, we introduce a stochastic integral for zero-energy additive functionals of symmetric Markov processes, extending earlier work of S. Nakao. Various properties of such stochastic integrals are discussed and an It\^{o}…

Probability · Mathematics 2012-05-29 Z. -Q. Chen , P. J. Fitzsimmons , K. Kuwae , T. -S. Zhang

In this article we study existence of pathwise stochastic integrals with respect to a general class of $n$-dimensional Gaussian processes and a wide class of adapted integrands. More precisely, we study integrands which are functions that…

Probability · Mathematics 2014-11-25 Zhe Chen , Lauri Viitasaari

We present a methodology for obtaining explicit solutions to infinite time horizon optimal stopping problems involving general, one-dimensional, It\^o diffusions, payoff functions that need not be smooth and state-dependent discounting.…

Computational Finance · Quantitative Finance 2012-10-10 Timothy C. Johnson

We discuss stochastic derivations, stochastic Hamiltonians and the flows that they generate, algebraic fluctuaion-dissipation theorems, etc., in a language common to both classical and quantum algebras. It is convenient to define distinct…

Quantum Physics · Physics 2007-05-23 John Gough

Processes which arise as solutions to stochastic differential equations involving the local time (SDELTs), such as skew Brownian motion, are frequent sources of inspiration in theory and applications. Existence and uniqueness results for…

Probability · Mathematics 2018-12-19 Daniel Wilson

For stochastic systems driven by continuous semimartingales an explicit formula for the logarithm of the Ito flow map is given. A similar formula is also obtained for solutions of linear matrix-valued SDEs driven by arbitrary…

Probability · Mathematics 2015-11-24 Kurusch Ebrahimi-Fard , Simon J. A. Malham , Frederic Patras , Anke Wiese

In the literature on stochastic frontier models until the early 2000s, the joint consideration of spatial and temporal dimensions was often inadequately addressed, if not completely neglected. However, from an evolutionary economics…

Methodology · Statistics 2024-10-29 Elisa Fusco , Giuseppe Arbia , Francesco Vidoli , Vincenzo Nardelli

In this paper we consider a fractional stochastic volatility model, that is a model in which the volatility may exhibit a long-range dependent or a rough/antipersistent behavior. We propose a dynamic sequential Monte Carlo methodology that…

Methodology · Statistics 2017-02-28 Alexandra Chronopoulou , Konstantinos Spiliopoulos

The solutions of stochastic differential equations without an external drift are stochastically invariant under time reversal. This singles out the "anti-Ito" integral.

Mathematical Physics · Physics 2016-05-12 Dietrich Ryter

Stochastic quantization in physics has been considered to provide a path integral representation of a probability distribution for Ito processes. It has been indicated that the stochastic quantization can involve a potential term, if the…

Systems and Control · Computer Science 2020-05-05 Masakazu Sano

In this work, we establish pathwise functional It\^o formulas for non-smooth functionals of real-valued continuous semimartingales. Under finite $(p,q)$-variation regularity assumptions in the sense of two-dimensional Young integration…

Probability · Mathematics 2015-05-19 Alberto Ohashi , Evelina Shamarova , Nikolai N. Shamarov

We derive It\^o-type change of variable formulas for smooth functionals of irregular paths with non-zero $p-$th variation along a sequence of partitions where $p \geq 1$ is arbitrary, in terms of fractional derivative operators, extending…

Classical Analysis and ODEs · Mathematics 2021-11-30 Rama Cont , Ruhong Jin

We develop the connection between large deviation theory and more applied approaches to stochastic hybrid systems by highlighting a common underlying Hamiltonian structure. A stochastic hybrid system involves the coupling between a…

Probability · Mathematics 2015-09-23 Paul Bressloff , Olivier Faugeras

The fractional order system, which is described by the fractional order derivative and integral, has been studied in many engineering areas. Recently, the concept of fractional order has been generalized to the distributed order concept,…

Systems and Control · Computer Science 2013-12-12 Pham Luu Trung Duong , Moonyong Lee

For non-anticipative functionals, differentiable in Chitashvili's sense, the It\^o formula for cadlag semimartingales is proved. Relations between different notions of functional derivatives are established.

Probability · Mathematics 2019-03-28 Michael Mania , Revaz Tevzadze

We develop the rough path counterpart of It\^o stochastic integration and - differential equations driven by general semimartingales. This significantly enlarges the classes of (It\^o / forward) stochastic differential equations treatable…

Probability · Mathematics 2017-09-18 Peter K. Friz , Huilin Zhang