English
Related papers

Related papers: A mixed fractional CIR model: positivity and an im…

200 papers

In the spirit of Marcus canonical stochastic differential equations, we study a similar notion of rough differential equations (RDEs), notably dropping the assumption of continuity prevalent in the rough path literature. A new metric is…

Probability · Mathematics 2019-02-12 Ilya Chevyrev , Peter K. Friz

We survey existing results concerning the study in small times of the density of the solution of a rough differential equation driven by fractional Brownian motions. We also slightly improve existing results and discuss some possible…

Probability · Mathematics 2014-03-05 Fabrice Baudoin , Cheng Ouyang

Let $B=(B_1(t),\ldots,B_d(t))$ be a $d$-dimensional fractional Brownian motion with Hurst index $\alpha<1/4$. Defining properly iterated integrals of $B$ is a difficult task because of the low H\"older regularity index of its paths. Yet…

Probability · Mathematics 2010-06-08 J. Magnen , J. Unterberger

Let $B^H$ be a fractional Brownian motion with Hurst index $0<H<1/2$. In this paper we study the {\it generalized quadratic covariation} $[f(B^H),B^H]^{(W)}$ defined by $$ [f(B^H),B^H]^{(W)}_t=\lim_{\epsilon\downarrow…

Probability · Mathematics 2011-06-21 Litan Yan , Chao Chen , Junfeng Liu

In this paper, we construct consistent statistical estimators of the Hurst index, volatility coefficient, and drift parameter for Bessel processes driven by fractional Brownian motion with $H<1/2$. As an auxiliary result, we also prove the…

Probability · Mathematics 2023-05-25 Yuliya Mishura , Anton Yurchenko-Tytarenko

In 1990, in It\^o's stochastic calculus framework, Aubin and Da Prato established a necessary and sufficient condition of invariance of a nonempty compact or convex subset $C$ of $\mathbb R^d$ ($d\in\mathbb N^*$) for stochastic differential…

Probability · Mathematics 2019-01-16 Laure Coutin , Nicolas Marie

We study the strong convergence order of the Euler-Maruyama scheme for scalar stochastic differential equations with additive noise and irregular drift. We provide a general framework for the error analysis by reducing it to a weighted…

Probability · Mathematics 2020-11-03 Andreas Neuenkirch , Michaela Szölgyenyi

Quantization techniques have been applied in many challenging finance applications, including pricing claims with path dependence and early exercise features, stochastic optimal control, filtering problems and efficient calibration of large…

Computational Finance · Quantitative Finance 2017-01-11 T. A. McWalter , R. Rudd , J. Kienitz , E. Platen

In the article, the rough path theory is extended to cover paths from the exponential Besov-Orlicz space \[B^\alpha_{\Phi_\beta,q}\quad\mbox{ for }\quad \alpha\in (1/3,1/2],\,\quad \Phi_\beta(x) \sim…

Probability · Mathematics 2024-06-06 Petr Čoupek , František Hendrych , Jakub Slavík

The combination of functional limit theorems with the pathwise analysis of deterministic and stochastic differential equations has proven to be a powerful approach to the analysis of fast-slow systems. In a multivariate setting, this…

Probability · Mathematics 2024-09-05 Maximilian Engel , Peter K. Friz , Tal Orenshtein

It has been recently shown that rough volatility models, where the volatility is driven by a fractional Brownian motion with small Hurst parameter, provide very relevant dynamics in order to reproduce the behavior of both historical and…

Mathematical Finance · Quantitative Finance 2016-09-08 Omar El Euch , Mathieu Rosenbaum

We study the existence of a unique solution to semilinear fractional backward doubly stochastic differential equation driven by a Brownian motion and a fractional Brownian motion with Hurst parameter less than 1/2. Here the stochastic…

Probability · Mathematics 2010-05-13 Shuai Jing , Jorge León

We prove a rough It\^o formula for path-dependent functionals of $\alpha$-H\"older continuous paths for $\alpha\in(0,1)$. Our approach combines the sewing lemma and a Taylor approximation in terms of path-dependent derivatives.

Probability · Mathematics 2025-07-14 Franziska Bielert

We study the Taylor expansion for the solution of a differential equation driven by a multidimensional Holder path with exponent \beta> 1/2. We derive a convergence criterion that enables us to write the solution as an infinite sum of…

Probability · Mathematics 2016-11-25 Fabrice Baudoin , Xuejing Zhang

We give an example of a reflected diffferential equation which may have infinitely many solutions if the driving signal is rough enough (e.g. of infinite $p$-variation, for some $p>2$). For this equation, we identify a sharp condition on…

Probability · Mathematics 2020-11-16 Paul Gassiat

We consider a differential equation driven by a Brownian motion as well as a rough path. We prove a Girsanov-type result for this equation to construct a weak solution in the probabilistic sense.

Probability · Mathematics 2018-05-04 Torstein Nilssen

This paper deals with estimation with functional covariates. More precisely, we aim at estimating the regression function $m$ of a continuous outcome $Y$ against a standard Wiener coprocess $W$. Following Cadre and Truquet (2015) and Cadre,…

Statistics Theory · Mathematics 2020-11-23 Karine Bertin , Nicolas Klutchnikoff

We consider stochastic Volterra integral equations driven by a fractional Brownian motion with Hurst parameter H > 1/2 . We first derive supremum norm estimates for the solution and its Malliavin derivative. We then show existence and…

Probability · Mathematics 2020-04-08 Mireia Besalú , David Márquez-Carreras , Eulàlia Nualart

This article offers sharp spatial and temporal mean-square regularity results for a class of semi-linear parabolic stochastic partial differential equations (SPDEs) driven by infinite dimensional fractional Brownian motion with the Hurst…

Numerical Analysis · Mathematics 2020-08-04 Xiaojie Wang , Ruisheng Qi , Fengze Jiang

We study a rough differential equation driven by fractional Brownian motion with Hurst parameter $H$ $(1/4<H \le 1/2)$. Under H\"ormander's condition on the coefficient vector fields, the solution has a smooth density for each fixed time.…

Probability · Mathematics 2019-09-12 Yuzuru Inahama , Nobuaki Naganuma