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On the combinatorics of iterated stochastic integrals

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Author Info
Jamshidian, Farshid
Abstract

This paper derives several identities for the iterated integrals of a general semimartingale. They involve powers, brackets, exponential and the stochastic exponential. Their form and derivations are combinatorial. The formulae simplify for continuous or finite-variation semimartingales, especially for counting processes. The results are motivated by chaotic representation of martingales, and a simple such application is given.

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File URL: http://mpra.ub.uni-muenchen.de/7165/
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 7165.

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Date of creation: 13 Feb 2008
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Handle: RePEc:pra:mprapa:7165

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Related research
Keywords: Semimartingale iterated integrals power jump processes Ito's formula stochastic exponential chaotic representation

Find related papers by JEL classification:
C0 - Mathematical and Quantitative Methods - - General

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This page was last updated on 2008-11-17.


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