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Recent work of Dupire and Carr and Lee has highlighted the importance of understanding the Skorokhod embedding originally proposed by Root for the model-independent hedging of variance options. Root's work shows that there exists a barrier…

证券定价 · 定量金融 2013-03-13 Alexander M. G. Cox , Jiajie Wang

We provide a complete characterisation of the Root solution to the Skorokhod embedding problem (SEP) by means of an optimal stopping formulation. Our methods are purely probabilistic and the analysis relies on a tailored time-reversal…

概率论 · 数学 2017-03-27 Alexander M. G. Cox , Jan Obłój , Nizar Touzi

We study the existence, optimality, and construction of non-randomised stopping times that solve the Skorokhod embedding problem (SEP) for Markov processes which satisfy a duality assumption. These stopping times are hitting times of…

概率论 · 数学 2021-03-30 Paul Gassiat , Harald Oberhauser , Christina Z. Zou

This paper examines the Root solution of the Skorohod embedding problem given full marginals on some compact time interval. Our results are obtained by limiting arguments based on finitely-many marginals Root solution of Cox, Obl\'oj and…

最优化与控制 · 数学 2019-12-18 Alexandre Richard , Xiaolu Tan , Nizar Touzi

Most results regarding Skorokhod embedding problems (SEP) so far rely on the assumption that the corresponding stopped process is uniformly integrable, which is equivalent to the convex ordering condition…

概率论 · 数学 2020-01-01 Jiajie Wang

We provide a new probabilistic proof of the connection between Rost's solution of the Skorokhod embedding problem and a suitable family of optimal stopping problems for Brownian motion with finite time-horizon. In particular we use…

概率论 · 数学 2017-01-10 Tiziano De Angelis

We solve the Skorokhod embedding problem for a class of stochastic processes satisfying an inhomogeneous stochastic differential equation (SDE) of the form $d A_t =\mu (t, A_t) d t + \sigma(t, A_t) d W_t$. We provide sufficient conditions…

We establish that the boundaries of the so-called Rost's reversed barrier are the unique couple of left-continuous monotonic functions solving a suitable system of nonlinear integral equations of Volterra type. Our result holds for…

概率论 · 数学 2017-01-24 Tiziano De Angelis , Yerkin Kitapbayev

We show that the barrier function in Root's solution to the Skorokhod embedding problem is continuous and finite at every point where the target measure has no atom and its absolutely continuous part is locally bounded away from zero.

概率论 · 数学 2021-07-12 Erhan Bayraktar , Thomas Bernhardt

In this paper, we introduce a new kind of "variant" reflected backward doubly stochastic differential equations (VRBDSDEs in short), where the drift is the nonlinear function of the barrier process. In the one stochastic case, this type of…

概率论 · 数学 2011-08-04 Auguste Aman , Yong Ren

In this article, we consider a generalisation of the Skorokhod embedding problem (SEP) with a delayed starting time. In the delayed SEP, we look for stopping times which embed a given measure in a stochastic process, which occur after a…

概率论 · 数学 2023-12-08 Alexander M. G. Cox , Annemarie M. Grass

In this paper, we study reflected backward stochastic differential equation (reflected BSDE in abbreviation) with rank-based data in a Markovian framework; that is, the solution to the reflected BSDE is above a prescribed boundary process…

概率论 · 数学 2020-07-14 Zhen-Qing Chen , Xinwei Feng

This paper deals with the problem of existence and uniqueness of a solution for a backward stochastic differential equation (BSDE for short) with one reflecting barrier in the case when the terminal value, the generator and the obstacle…

概率论 · 数学 2008-07-14 Said Hamadene , Alexandre Popier

This paper deals with existence and uniqueness, in viscosity sense, of a solution for a system of m variational partial differential inequalities with inter-connected obstacles. A particular case of this system is the deterministic version…

最优化与控制 · 数学 2012-11-22 Said Hamadène , Marie-Amélie Morlais

We solve the Skorokhod embedding problem for a class of Gaussian processes including Brownian motion with non-linear drift. Our approach relies on solving an associated strongly coupled system of Forward Backward Stochastic Differential…

概率论 · 数学 2015-12-17 Alexander Fromm , Peter Imkeller , David J. Prömel

We solve the Skorokhod embedding problem (SEP) for a general time-homogeneous diffusion $X$: given a distribution $\rho$, we construct a stopping time $\tau$ such that the stopped process $X_{\tau}$ has the distribution $\rho$. Our solution…

概率论 · 数学 2015-06-02 Stefan Ankirchner , David Hobson , Philipp Strack

In this paper we deal with Skorokhod problem for right continuous left limited (rcll) barriers. We prove existence and uniqueness of the solution when the barriers are only supposed to be rcll and completely separated. Then, we apply our…

概率论 · 数学 2019-04-26 Rachid Belfadli , Imane Jarni , Youssef Ouknine

Let $E$ be a complete, separable metric space and $A$ be an operator on $C_b(E)$. We give an abstract definition of viscosity sub/supersolution of the resolvent equation $\lambda u-Au=h$ and show that, if the comparison principle holds,…

概率论 · 数学 2015-11-19 Cristina Costantini , Thomas G. Kurtz

We show the existence and uniqueness of a continuous viscosity solution of a system of partial differential equations (PDEs for short) without assuming the usual monotonicity conditions on the driver function as in Hamad\`ene and Morlais's…

最优化与控制 · 数学 2018-02-14 Said Hamadène , Mohamed Mnif , Sarah Neffati

We consider the optimal Skorokhod embedding problem (SEP) given full marginals over the time interval $[0,1]$. The problem is related to the study of extremal martingales associated with a peacock ("process increasing in convex order", by…

概率论 · 数学 2015-03-03 Sigrid Kallblad , Xiaolu Tan , Nizar Touzi
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