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We give a collection of explicit sufficient conditions for the true martingale property of a wide class of exponentials of semimartingales. We express the conditions in terms of semimartingale characteristics. This turns out to be very…

Mathematical Finance · Quantitative Finance 2016-08-12 David Criens , Kathrin Glau , Zorana Grbac

We consider a parabolic semilinear non-autonomous problem $(\tilde P)$ for a fractional time dependent operator $\mathcal{B}^{s,t}_\Omega$ with Wentzell-type boundary conditions in a possibly non-smooth domain $\Omega\subset\mathbb{R}^N$.…

Analysis of PDEs · Mathematics 2023-07-21 Simone Creo , Maria Rosaria Lancia

Entropic Optimal Transport (EOT), also referred to as the Schr\"odinger problem, seeks to find a random processes with prescribed initial/final marginals and with minimal relative entropy with respect to a reference measure. The relative…

Optimization and Control · Mathematics 2024-12-17 Jean-David Benamou , Guillaume Chazareix , Marc Hoffmann , Grégoire Loeper , François-Xavier Vialard

We develop an approach to learn an interpretable semi-parametric model of a latent continuous-time stochastic dynamical system, assuming noisy high-dimensional outputs sampled at uneven times. The dynamics are described by a nonlinear…

Machine Learning · Statistics 2019-02-13 Lea Duncker , Gergo Bohner , Julien Boussard , Maneesh Sahani

We construct an aggregated version of the value processes associated with stochastic control problems, where the criterion to optimise is given by solutions to semi-martingale backward stochastic differential equations (BSDEs). The results…

Probability · Mathematics 2025-07-03 Dylan Possamaï , Marco Rodrigues , Alexandros Saplaouras

Probabilistic circuits (PCs) are a class of tractable probabilistic models, which admit efficient inference routines depending on their structural properties. In this paper, we introduce md-vtrees, a novel structural formulation of…

Artificial Intelligence · Computer Science 2023-04-18 Benjie Wang , Marta Kwiatkowska

We use the abstract method of (local) martingale problems in order to give criteria for convergence of stochastic processes. Extending previous notions, the formulation we use is neither restricted to Markov processes (or semimartingales),…

Probability · Mathematics 2021-08-27 David Criens , Peter Pfaffelhuber , Thorsten Schmidt

The important application of semi-static hedging in financial markets naturally leads to the notion of quasi self-dual processes. The focus of our study is to give new characterizations of quasi self-duality for exponential L\'evy processes…

Risk Management · Quantitative Finance 2012-01-26 Thorsten Rheinländer , Michael Schmutz

We study and compare two concepts for weak solutions to semilinear parabolic path-dependent partial differential equations (PPDEs). The first is that of mild solutions as it appears, e.g., in the log-Laplace functionals of historical…

Probability · Mathematics 2018-11-16 Alexander Kalinin , Alexander Schied

In this paper, we propose a semigroup method for solving high-dimensional elliptic partial differential equations (PDEs) and the associated eigenvalue problems based on neural networks. For the PDE problems, we reformulate the original…

Numerical Analysis · Mathematics 2022-01-14 Haoya Li , Lexing Ying

In this paper, we study the Entropic Martingale Optimal Transport (EMOT) problem on \mathbb{R}. The investigation of the EMOT problem arises in the calibration problem of the Stochastic Volatility Models, where martingale constraints…

Probability · Mathematics 2026-02-16 Fan Chen , Giovanni Conforti , Zhenjie Ren , Xiaozhen Wang

We construct families of rational functions $f \colon \bP^1_k \to \bP^1_k$ of degree $d \geq 2$ over a perfect field $k$ whose associated fixed-point processes fail to be martingales. Conversely, for any normal variety $X \subset…

Number Theory · Mathematics 2026-04-09 Jianfei He , Zheng Zhu

For any real-valued stochastic process $X$ with c\'rdl\'rg paths we define non-empty family of processes which have locally finite total variation, have jumps of the same order as the process $X$ and uniformly approximate its paths on…

Probability · Mathematics 2017-06-26 Rafał M. Łochowski

We consider dynamic sublinear expectations (i.e., time-consistent coherent risk measures) whose scenario sets consist of singular measures corresponding to a general form of volatility uncertainty. We derive a c\`adl\`ag nonlinear…

Risk Management · Quantitative Finance 2013-06-18 Marcel Nutz , H. Mete Soner

This paper provides necessary and sufficient conditions for a pair of randomised stopping times to form a saddle point of a zero-sum Dynkin game with partial and/or asymmetric information across players. The framework is non-Markovian and…

Probability · Mathematics 2025-10-20 Tiziano De Angelis , Jan Palczewski , Jacob Smith

Semilinear, $N-$dimensional stochastic differential equations (SDEs) driven by additive L\'evy noise are investigated. Specifically, given $\alpha\in\left(\frac{1}{2},1\right)$, the interest is on SDEs driven by $2\alpha-$stable,…

Probability · Mathematics 2022-10-07 Alessandro Bondi

In this paper we introduce a new type of norms for semimartingales, under both linear and nonlinear expectations. Our norm is defined in the spirit of quasimartingales, and it characterizes square integrable semimartingales. This work is…

Probability · Mathematics 2012-11-01 Triet Pham , Jianfeng Zhang

We present a novel deep learning method for estimating time-dependent parameters in Markov processes through discrete sampling. Departing from conventional machine learning, our approach reframes parameter approximation as an optimization…

We derive a nonparametric higher-order asymptotic expansion for small-time changes of conditional characteristic functions of It\^o semimartingale increments. The asymptotics setup is of joint type: both the length of the time interval of…

Statistical Finance · Quantitative Finance 2025-02-12 Carsten H. Chong , Viktor Todorov

Our main result is the martingale representations for Markov additive processes where the modulator is a Levy process. These processes have three parts: the modulator, the jumps of the ordinate triggered by the modulator, and the…

Probability · Mathematics 2025-12-09 Celal Umut Yaran , Mine Çağlar