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When expanding a filtration with a stochastic process it is easily possible for semimartingale no longer to remain semimartingales in the enlarged filtration. Y. Kchia and P. Protter indicated a way to avoid this pitfall in 2015, but they…

概率论 · 数学 2020-02-18 Léo Neufcourt , Philip Protter

When the \textit{martingale representation property} holds, we call any local martingale which realizes the representation a \textit{representation process}. There are two properties of the \textit{representation process} which can greatly…

概率论 · 数学 2016-03-18 Shiqi Song

Recently, a new approach in the fine analysis of stochastic processes sample paths has been developed to predict the evolution of the local regularity under (pseudo-)differential operators. In this paper, we study the sample paths of…

概率论 · 数学 2013-08-29 Paul Balança , Erick Herbin

We deal with various alternative decompositions of F-martingales with respect to the filtration G which represents the enlargement of a filtration F by a progressive flow of observations of a random time that either belongs to the class of…

概率论 · 数学 2013-07-25 Libo Li , Marek Rutkowski

Motivation for this paper is to understand the impact of information on asset price bubbles and perceived arbitrage opportunities. This boils down to study optional projections of $\mathbb{G}$-adapted strict local martingales into a smaller…

数理金融 · 定量金融 2020-03-24 Francesca Biagini , Andrea Mazzon , Ari-Pekka Perkkiö

A constrained informationally efficient market is defined to be one whose price process arises as the outcome of some equilibrium where agents face restrictions on trade. This paper investigates the case of short sale constraints, a setting…

综合金融 · 定量金融 2014-01-10 Robert A. Jarrow , Martin Larsson

We show that all local martingales with respect to the initially enlarged natural filtration of a vector of multivariate point processes can be weakly represented up to the minimum among the explosion times of the components. We also prove…

概率论 · 数学 2021-07-12 Antonella Calzolari , Barbara Torti

In this paper we extend the notion of ``filtration-consistent nonlinear expectation" (or "${\cal F}$-consistent nonlinear expectation") to the case when it is allowed to be dominated by a $g$-expectation that may have a quadratic growth. We…

概率论 · 数学 2007-05-23 Ying Hu , Jin Ma , Shige Peng , Song Yao

We derive the explicit form of the martingale representation for square-integrable processes that are martingales with respect to the natural filtration of the super-Brownian motion. This is done by using a weak extension of the Dupire…

概率论 · 数学 2021-04-29 Christian Mandler , Ludger Overbeck

In this paper we introduce a variant of Burkholder's martingale transform associated with two martingales with respect to different filtrations. Even though the classical martingale techniques cannot be applied, we show that the discussed…

概率论 · 数学 2015-02-24 Vjekoslav Kovač , Kristina Ana Škreb

We present two examples of loss of the predictable representation property for semi-martingales by enlargement of the reference filtration. First of all we show that the predictable representation property for a square-integrable…

概率论 · 数学 2016-01-12 Antonella Calzolari , Barbara Torti

We prove that, for locally bounded processes, absence of arbitrage opportunities of the first kind is equivalent to the existence of a dominating local martingale measure. This is related to and motivated by results from the theory of…

概率论 · 数学 2013-04-02 Peter Imkeller , Nicolas Perkowski

We consider a financial market model with a single risky asset whose price process evolves according to a general jump-diffusion with locally bounded coefficients and where market participants have only access to a partial information flow.…

投资组合管理 · 定量金融 2015-08-14 Claudio Fontana , Bernt Øksendal , Agnès Sulem

Every submartingale S of class D has a unique Doob-Meyer decomposition S=M+A, where M is a martingale and A is a predictable increasing process starting at 0. We provide a short and elementary prove of the Doob-Meyer decomposition theorem.…

概率论 · 数学 2010-12-24 Mathias Beiglboeck , Walter Schachermayer , Bezirgen Veliyev

In this note we introduce a new kind of augmentation of filtrations along a sequence of stopping times. This augmentation is suitable for the construction of new probability measures associated to a positive strict local martingale as done…

概率论 · 数学 2013-10-29 Doerte Kreher , Ashkan Nikeghbali

We study the predictable representation property in the progressive enlargement F^\tau of a reference filtration F by a random time \tau. Our approach is based on the decomposition of any random time into two parts, one overlapping…

概率论 · 数学 2024-06-21 Antonella Calzolari , Barbara Torti

In this paper, we study the dual problem of the expected utility maximization in incomplete markets with bounded random endowment. We start with the problem formulated in the paper of Cvitani\'{c}-Schachermayer-Wang (2001) and prove the…

概率论 · 数学 2015-11-30 Lingqi Gu , Yiqing Lin , Junjian Yang

In this article, we study the continuous-discrete projection filter for exponential-family manifolds with conjugate likelihoods. We first derive the local projection error of the prediction step of the continuous-discrete projection filter.…

最优化与控制 · 数学 2026-02-11 Muhammad F. Emzir , Zaid A. Sawlan , Sami El Ferik

In the context of jump-diffusion market models we construct examples that satisfy the weaker no-arbitrage condition of NA1 (NUPBR), but not NFLVR. We show that in these examples the only candidate for the density process of an equivalent…

数理金融 · 定量金融 2015-11-30 Jacopo Mancin , Wolfgang J. Runggaldier

In the paper, we introduce the notion of a local regular supermartingale relative to a convex set of equivalent measures and prove for it an optional Doob decomposition in the discrete case. This Theorem is a generalization of the famous…

概率论 · 数学 2016-01-15 Nicholas Gonchar