vix.ing · top · new · best · stats · spec

A Counterexample in Ito Integration Theory

2023/05/18 by Nielsen, Lars Tyge
#60 #FOS: Economics and business #FOS: Mathematics #Mathematical Finance (q-fin.MF) #Probability (math.PR)

paper · doi:10.48550/arxiv.2305.10695

Abstract

Ito's Lemma implies that if W is a Wiener process and f is a twice continuously differentiable function, then the process f(W) is the sum of a time integral and an Ito integral. The Ito integrand is not necessarily locally square integrable. This note provides a counterexample.

Related