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In this note we introduce and solve a soft classification version of the famous Bayesian sequential testing problem for a Brownian motion's drift. We establish that the value function is the unique non-trivial solution to a free boundary…

Probability · Mathematics 2025-01-22 Steven Campbell , Yuchong Zhang

We derive an asymptotic expansion for the quadratic variation of a stochastic process satisfying a stochastic differential equation driven by a fractional Brownian motion, based on the theory of asymptotic expansion of Skorohod integrals…

Probability · Mathematics 2022-06-02 Hayate Yamagishi , Nakahiro Yoshida

In this paper, by using a Taylor development type formula, we show how it is possible to associate differential operators with stochastic differential equations driven by a fractional Brownian motion. As an application, we deduce that…

Probability · Mathematics 2007-05-23 Fabrice Baudoin , Laure Coutin

If we compose a smooth function g with fractional Brownian motion B with Hurst index H > 1/2, then the resulting change of variables formula [or It/^o- formula] has the same form as if fractional Brownian motion would be a continuous…

Probability · Mathematics 2011-11-11 Ehsan Azmoodeh , Heikki Tikanmäki , Esko Valkeila

In this paper we prove, for small Hurst parameters, the higher order differentiability of a stochastic flow associated with a stochastic differential equation driven by an additive multi-dimensional fractional Brownian noise, where the…

Probability · Mathematics 2018-05-15 Oussama Amine , David R. Baños , Frank Proske

We study the notions of differentiating and non-differentiating sigma-fields in the general framework of (possibly drifted) Gaussian processes, and characterize their invariance properties under equivalent changes of probability measure. As…

Probability · Mathematics 2016-08-14 Sébastien Darses , Ivan Nourdin , Giovanni Peccati

Recently the characterization of the compactness in the space $BV([0,1])$ of functions of bounded Jordan variation was given. Here, certain generalizations of this result are given for the spaces of functions of bounded Waterman…

Functional Analysis · Mathematics 2022-12-02 Jacek Gulgowski

Generalizations of tempered fractional Brownian from single index to two indices and variable index or tempered multifractional Brownian motion are studied. Tempered fractional Brownian motion and tempered multifractional Brownian motion…

Probability · Mathematics 2021-04-13 S. C. Lim , Chai Hok Eab

In this paper, we mainly focus on the set-valued (stochastic) analysis on the space of convex, closed, but possibly unbounded sets, and try to establish a useful theoretical framework for studying the set-valued stochastic differential…

Probability · Mathematics 2024-03-26 Atiqah Almuzaini , Jin Ma

In the framework of fractional stochastic calculus, we study the existence and the uniqueness of the solution for a backward stochastic differential equation, formally written as: [{[c]{l}% -dY(t)= f(t,\eta(t),Y(t),Z(t))dt-Z(t)\delta…

Probability · Mathematics 2015-10-30 Lucian Maticiuc , Tianyang Nie

Extending the notion of bounded variation, a function $u \in L_c^1(\mathbb R^n)$ is of bounded fractional variation with respect to some exponent $\alpha$ if there is a finite constant $C \geq 0$ such that the estimate \[ \biggl|\int u(x)…

Functional Analysis · Mathematics 2020-01-23 Roger Züst

Fractional equations governing the distribution of reflecting drifted Brownian motions are presented. The equations are expressed in terms of tempered Riemann--Liouville type derivatives. For these operators a Marchaud-type form is obtained…

Probability · Mathematics 2019-02-11 Mirko D'Ovidio , Francesco Iafrate , Enzo Orsingher

Stochastic integration w.r.t. fractional Brownian motion (fBm) has raised strong interest in recent years, motivated in particular by applications in finance and Internet traffic modelling. Since fBm is not a semi-martingale, stochastic…

Probability · Mathematics 2013-05-03 Joachim Lebovits

Fractional Brownian motion is a Gaussian stochastic process with stationary, long-time correlated increments and is frequently used to model anomalous diffusion processes. We study numerically fractional Brownian motion confined to a finite…

Statistical Mechanics · Physics 2019-03-22 T. Guggenberger , G. Pagnini , T. Vojta , R. Metzler

Gaussian processes occupy one of the leading places in modern statistics and probability theory due to their importance and a wealth of strong results. The common use of Gaussian processes is in connection with problems related to…

Statistics Theory · Mathematics 2023-02-01 Zexun Chen , Jun Fan , Kuo Wang

We consider a generalisation of a definite integral involving the Bessel function of the first kind. It is shown that this integral can be expressed in terms of the Fox-Wright function ${}_p\Psi_q(z)$ of one variable. Some consequences of…

Classical Analysis and ODEs · Mathematics 2022-05-09 S A Dar , M Kamarujjama , R B Paris

This paper is the first part of our survey on various results about the distribution of exponential type Brownian functionals defined as an integral over time of geometric Brownian motion. Several related topics are also mentioned.

Probability · Mathematics 2007-05-23 Hiroyuki Matsumoto , Marc Yor

We introduce fractional Brownian motion processes (fBm) as an alternative model for the turbulent index of refraction. These processes allow to reconstruct most of the index properties, but they are not differentiable. We overcome the…

Optics · Physics 2007-05-23 Dario G Perez

We consider the problem of valuation of American (call and put) options written on a dividend paying stock governed by the geometric Brownian motion. We show that the value function has two different but related representations: by means of…

Probability · Mathematics 2013-02-12 Tomasz Klimsiak , Andrzej Rozkosz

Using truncated variation techniques we obtain an improved version of the Loeve-Young inequality for the Riemann-Stieltjes integrals driven by rough paths. This allowed us to strenghten some result on the existence of solutions of integral…

Functional Analysis · Mathematics 2014-09-16 Rafał M. Łochowski
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