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We study the regularity properties of integro-partial differential equations of Hamilton-Jocobi-Bellman type with terminal condition, which can be interpreted through a stochastic control system, composed of a forward and a backward…

Probability · Mathematics 2011-10-10 Shuai Jing

A new coupling argument is introduced to establish Driver's integration by parts formula and shift Harnack inequality. Unlike known coupling methods where two marginal processes with different starting points are constructed to move…

Probability · Mathematics 2014-04-01 Feng-Yu Wang

Simulation of rough volatility models involves discretization of stochastic integrals where the integrand is a function of a (correlated) fractional Brownian motion of Hurst index $H \in (0,1/2)$. We obtain results on the rate of…

Computational Finance · Quantitative Finance 2023-02-07 Paul Gassiat

We construct a pathwise integration theory, associated with a change of variable formula, for smooth functionals of continuous paths with arbitrary regularity defined in terms of the notion of $p$-th variation along a sequence of time…

Probability · Mathematics 2019-05-07 Rama Cont , Nicolas Perkowski

In this paper, we establish a probabilistic representation as well as some integration by parts formulae for the marginal law at a given time maturity of some stochastic volatility model with unbounded drift. Relying on a perturbation…

Probability · Mathematics 2020-11-23 Junchao Chen , Noufel Frikha , Houzhi Li

In this work we introduce a theory of stochastic integration for operator-valued integrands with respect to some classes of cylindrical martingale-valued measures in Hilbert spaces. The integral is constructed via the radonification of…

Probability · Mathematics 2021-12-06 A. E. Alvarado-Solano , C. A. Fonseca-Mora

The research presented in this article provides an alternative option pricing approach for a class of rough fractional stochastic volatility models. These models are increasingly popular between academics and practitioners due to their…

Pricing of Securities · Quantitative Finance 2019-08-02 Raul Merino , Jan Pospíšil , Tomáš Sobotka , Tommi Sottinen , Josep Vives

We consider the problem of pricing basket options in a multivariate Black Scholes or Variance Gamma model. From a numerical point of view, pricing such options corresponds to moderate and high dimensional numerical integration problems with…

Computational Finance · Quantitative Finance 2017-02-27 Christian Bayer , Markus Siebenmorgen , Raul Tempone

We introduce time-inhomogeneous stochastic volatility models, in which the volatility is described by a nonnegative function of a Volterra type continuous Gaussian process that may have very rough sample paths. The main results obtained in…

Probability · Mathematics 2021-01-01 Archil Gulisashvili

We define and solve Volterra equations driven by an irregular signal, by means of a variant of the rough path theory allowing to handle generalized integrals weighted by an exponential coefficient. The results are applied to the fractional…

Probability · Mathematics 2008-10-13 Samy Tindel , Aurélien Deya

The immersed boundary (IB) method is a non-body conforming approach to fluid-structure interaction (FSI) that uses an Eulerian description of the momentum, viscosity, and incompressibility of a coupled fluid-structure system and a…

Numerical Analysis · Mathematics 2022-02-18 Jae H. Lee , Boyce E. Griffith

In this paper, we establish existence, uniqueness, and regularity properties of the solutions to multi-dimensional backward stochastic Volterra integral equations (BSVIEs), whose (possibly random) generator reflects nonlinear dependence on…

Probability · Mathematics 2025-01-09 Qian Lei , Chi Seng Pun

This note is devoted to construct a rough path above a multidimensional fractional Brownian motion $B$ with any Hurst parameter $H\in(0,1)$, by means of its representation as a Volterra Gaussian process. This approach yields some algebraic…

Probability · Mathematics 2011-11-10 David Nualart , Samy Tindel

In this paper we derive a Bismut-Elworthy-Li type formula with respect to strong solutions to singular stochastic differential equations (SDE's) with additive noise given by a multi-dimensional fractional Brownian motion with Hurst…

Probability · Mathematics 2018-05-30 Oussama Amine , Emmanuel Coffie , Fabian Harang , Frank Proske

In this article we are interested in the differentiability property of the Markovian semi-group corresponding to the Bessel processes of nonnegative dimension. More precisely, for all $\delta \geq 0$ and $T>0$, we compute the derivative of…

Probability · Mathematics 2017-04-17 Henri Elad Altman

In this paper, we consider equilibrium strategies under Volterra processes and time-inconsistent preferences embracing mean-variance portfolio selection (MVP). Using a functional It\^o calculus approach, we overcome the non-Markovian and…

Mathematical Finance · Quantitative Finance 2021-12-23 Bingyan Han , Hoi Ying Wong

Integration By Parts (IBP) is an important method for computing Feynman integrals. This work describes a formulation of the theory involving a set of differential equations in parameter space, and especially the definition and study of an…

High Energy Physics - Theory · Physics 2015-07-07 Barak Kol

In this paper, we study the existence and uniqueness of mild solution for a stochastic neutral partial functional integro-differential equation with delay in a Hilbert space driven by a fractional Brownian motion and with non-deterministic…

Probability · Mathematics 2018-09-11 B. Boufoussi , S. Hajji , S. Mouchtabih

Particle smoothing methods are used for inference of stochastic processes based on noisy observations. Typically, the estimation of the marginal posterior distribution given all observations is cumbersome and computational intensive. In…

Machine Learning · Computer Science 2017-05-24 H. -Ch. Ruiz , H. J. Kappen

This paper is concerned with the relationship between forward-backward stochastic Volterra integral equations (FBSVIEs, for short) and a system of (non-local in time) path dependent partial differential equations (PPDEs, for short). Due to…

Probability · Mathematics 2021-01-26 Hanxiao Wang , Jiongmin Yong , Jianfeng Zhang