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We construct a binary market model with memory that approximates a continuous-time market model driven by a Gaussian process equivalent to Brownian motion. We give a sufficient conditions for the binary market to be arbitrage-free. In a…

概率论 · 数学 2007-05-23 Akihiko Inoue , Yumiharu Nakano , Vo Anh

We consider fractional Brownian motion with the Hurst parameters from (1/2,1). We found that the increment of a fractional Brownian motion can be represented as the sum of a two independent Gaussian processes one of which is smooth in the…

概率论 · 数学 2015-10-14 Nikolai Dokuchaev

In this paper we consider stochastic differential equations with non-negativity constraints, driven by a fractional Brownian motion with Hurst parameter $H>\1/2$. We first study an ordinary integral equation where the integral is defined in…

概率论 · 数学 2012-03-14 Marco Ferrante , Carles Rovira

In this article we investigate the controllability for neutral stochastic functional integro-differential equations with finite delay, driven by a fractional Brownian motion with Hurst parameter lesser than $1/2$ in a Hilbert space. We…

概率论 · 数学 2018-09-26 Brahim Boufoussi , Soufiane Mouchtabih

We consider a family of mixed processes given as the sum of a fractional Brownian motion with Hurst parameter $H\in(3/4,1)$ and a multiple of an independent standard Brownian motion, the family being indexed by the scaling factor in front…

概率论 · 数学 2019-02-11 Fernando Cordero , Irene Klein , Lavinia Perez-Ostafe

We characterize absence of arbitrage with simple trading strategies in a discounted market with a constant bond and several risky assets. We show that if there is a simple arbitrage, then there is a 0-admissible one or an obvious one, that…

证券定价 · 定量金融 2012-10-22 Christian Bender

In this note we prove an existence and uniqueness result for the solution of multidimensional stochastic delay differential equations with normal reflection. The equations are driven by a fractional Brownian motion with Hurst parameter…

概率论 · 数学 2012-03-05 Mireia Besalú , Carles Rovira

In this note we prove an existence and uniqueness result of solution for stochastic Volterra integral equations driven by a fractional Brownian motion with Hurst parameter H > 1/2, showing also that the solution has finite moments. The…

概率论 · 数学 2010-03-09 Mireia Besalú , Carles Rovira

We consider stochastic differential equation involving pathwise integral with respect to fractional Brownian motion. The estimates for the Hurst parameter are constructed according to first- and second-order quadratic variations of observed…

概率论 · 数学 2012-06-28 K. Kubilius , Y. Mishura

Given a fractional Brownian motion \,\,$(B_{t}^{H})_{t\geq 0}$,\, with Hurst parameter \,$> 1/2$\,\,we study the properties of all solutions of \,\,: {equation} X_{t}=B_{t}^{H}+\int_0^t X_{u}d\mu(u), \;\; 0\leq t\leq 1{equation} A different…

概率论 · 数学 2011-07-20 Mamadou Abdoul Diop , Youssef Ouknine

The paper suggests a way of stochastic integration of random integrands with respect to fractional Brownian motion with the Hurst parameter H> 1/2. The integral is defined initially on the processes that are "piecewise" predictable on a…

概率论 · 数学 2020-04-21 Nikolai Dokuchaev

This paper addresses the question of how an arbitrage-free semimartingale model is affected when stopped at a random horizon. We focus on No-Unbounded-Profit-with-Bounded-Risk (called NUPBR hereafter) concept, which is also known in the…

证券定价 · 定量金融 2014-02-21 Anna Aksamit , Tahir Choulli , Jun Deng , Monique Jeanblanc

In this paper an arbitrage strategy is constructed for the modified Black-Scholes model driven by fractional Brownian motion or by a time changed fractional Brownian motion, when the volatility is stochastic. This latter property allows the…

信息论 · 计算机科学 2007-07-13 Erhan Bayraktar , H. Vincent Poor

We show that with suitable restrictions on allowable trading strategies, one has no arbitrage in settings where the traditional theory would admit arbitrage possibilities. In particular, price processes that are not semimartingales are…

概率论 · 数学 2009-06-15 Robert A. Jarrow , Philip Protter , Hasanjan Sayit

We consider a nondominated model of a discrete-time financial market where stocks are traded dynamically, and options are available for static hedging. In a general measure-theoretic setting, we show that absence of arbitrage in a…

综合金融 · 定量金融 2015-03-17 Bruno Bouchard , Marcel Nutz

We find an explicit expression for the cross-covariance between stochastic integral processes with respect to a $d$-dimensional fractional Brownian motion (fBm) $B_t$ with Hurst parameter $H>1/2$, where the integrands are vector fields…

概率论 · 数学 2016-12-16 Yohaï Maayan , Eddy Mayer-Wolf

In this paper, we show how concentration inequalities for Gaussian quadratic form can be used to propose exact confidence intervals of the Hurst index parametrizing a fractional Brownian motion. Both cases where the scaling parameter of the…

统计理论 · 数学 2010-06-16 Jean-Christophe Breton , Jean-François Coeurjolly

In this paper we prove a viability result for multidimensional, time dependent, stochastic differential equations driven by fractional Brownian motion with Hurst parameter1/2 < H < 1, using pathwise approach. The sufficient condition is…

动力系统 · 数学 2008-09-01 Ioana Ciotir , Aurel Rascanu

In this paper, we study linear backward stochastic differential equations driven by a class of centered Gaussian non-martingales, including fractional Brownian motion with Hurst parameter $H\in (0,1)\setminus \{\frac12\}$. We show that, for…

概率论 · 数学 2016-01-20 Christian Bender , Lauri Viitasaari

We present a new framework for Hermite fractional financial markets, generalizing the fractional Brownian motion and fractional Rosenblatt markets. Considering pure and mixed Hermite markets, we introduce a strategy-specific arbitrage tax…

数理金融 · 定量金融 2017-09-27 Stoyan V. Stoyanov , Svetlozar T. Rachev , Stefan Mittnik , Frank J. Fabozzi
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