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This paper considers the class of L\'evy processes that can be written as a Brownian motion time changed by an independent L\'evy subordinator. Examples in this class include the variance gamma model, the normal inverse Gaussian model, and…

概率论 · 数学 2008-06-02 T. R. Hurd , A. Kuznetsov

Our first result concerns a characterisation by means of a functional equation of Poisson point processes conditioned by the value of their first moment. It leads to a generalised version of Mecke's formula. En passant, it also allows to…

概率论 · 数学 2018-09-25 Giovanni Conforti , Tetiana Kosenkova , Sylvie Roelly

We study the asymptotic tail behaviour of the first-passage time over a moving boundary for asymptotically $\alpha$-stable L\'evy processes with $\alpha<1$. Our main result states that if the left tail of the L\'evy measure is regularly…

概率论 · 数学 2015-01-14 Frank Aurzada , Tanja Kramm

The mean first exit (passage) time characterizes the average time of a stochastic process never leaving a fixed region in the state space, while the escape probability describes the likelihood of a transition from one region to another for…

概率论 · 数学 2017-02-28 Weihua Deng , Xiaochao Wu , Wanli Wang

Recent empirical studies suggest that the volatility of an underlying price process may have correlations that decay slowly under certain market conditions. In this paper, the volatility is modeled as a stationary process with long-range…

证券定价 · 定量金融 2018-04-17 Josselin Garnier , Knut Solna

This paper presents a derivation of the explicit price for the perpetual American put option time-capped by the first drawdown epoch beyond a predefined level. We consider the market in which an asset price is described by geometric L\'evy…

概率论 · 数学 2025-09-01 Zbigniew Palmowski , Paweł Stȩpniak

In this paper we consider the problem of pricing a perpetual American put option in an exponential regime-switching L\'{e}vy model. For the case of the (dense) class of phase-type jumps and finitely many regimes we derive an explicit…

证券定价 · 定量金融 2008-12-02 Z. Jiang , M. R. Pistorius

We investigate two coupled properties of Levy stable random motions: The first passage times (FPTs) and the first passage leapovers (FPLs). While, in general, the FPT problem has been studied quite extensively, the FPL problem has hardly…

软凝聚态物质 · 物理学 2008-12-08 T. Koren , A. V. Chechkin , J. Klafter

We develop a method based on martingales to study first-passage problems of time-additive observables exiting an interval of finite width in a Markov process. In the limit that the interval width is large, we derive generic expressions for…

统计力学 · 物理学 2025-05-14 Izaak Neri

For many stochastic dynamic systems, the Mean First Passage Time (MFPT) is a useful concept, which gives expected time before a state of interest. This work is an extension of MFPT in several ways. (1) We show that for some systems the…

系统与控制 · 计算机科学 2014-12-23 Cenk Oguz Saglam , Katie Byl

We present the analysis of the first passage time problem on a finite interval for the generalized Wiener process that is driven by L\'evy stable noises. The complexity of the first passage time statistics (mean first passage time,…

统计力学 · 物理学 2020-03-16 B. Dybiec , E. Gudowska-Nowak , P. Hänggi

The purpose of this article is to provide, with the help of a fluctuation identity, a generic link between a number of known identities for the first passage time and overshoot above/below a fixed level of a Levy process and the solution of…

概率论 · 数学 2008-12-02 L. Alili , A. E. Kyprianou

In this paper we study the mean of the first exit time from a bounded interval of various L\'evy processes. We establish sharp two-sided estimates of the mean for L\'evy processes under certain condition on their characteristic exponents.…

概率论 · 数学 2019-11-13 Tomasz Grzywny

In this paper we analyze a L\'evy process reflected at a general (possibly random) barrier. For this process we prove Central Limit Theorem for the first passage time. We also give the finite-time first passage probability asymptotics.

概率论 · 数学 2017-05-08 Zbigniew Palmowski , Przemysław Świątek

We study a first passage time of a L\'evy process over a positive constant level. In the spectrally negative case we give conditions for absolutely continuity of the distributions of the first passage times. The tail asymptotics of their…

概率论 · 数学 2023-03-16 Shunsuke Kaji , Muneya Matsui

We derive a functional equation for the mean first-passage time (MFPT) of a generic self-similar Markovian continuous process to a target in a one-dimensional domain and obtain its exact solution. We show that the obtained expression of the…

统计力学 · 物理学 2015-05-27 Vincent Tejedor , Olivier Bénichou , Ralf Metzler , Raphael Voituriez

The first-passage time is proposed as an independent thermodynamic parameter of the statistical distribution that generalizes the Gibbs distribution. The theory does not include the determination of the first passage statistics itself. A…

统计力学 · 物理学 2022-08-22 V. V. Ryazanov

We investigate the behavior of L\'{e}vy processes with convolution equivalent L\'{e}vy measures, up to the time of first passage over a high level u. Such problems arise naturally in the context of insurance risk where u is the initial…

概率论 · 数学 2013-07-23 Philip S. Griffin

We investigate exponential stock models driven by tempered stable processes, which constitute a rich family of purely discontinuous L\'{e}vy processes. With a view of option pricing, we provide a systematic analysis of the existence of…

数理金融 · 定量金融 2025-11-21 Uwe Küchler , Stefan Tappe

Stable distributions are a celebrated class of probability laws used in various fields. The $\alpha$-stable process, and its exponentially tempered counterpart, the Classical Tempered Stable (CTS) process, are also prominent examples of…

概率论 · 数学 2024-12-10 Taher Jalal
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