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Stability of the Covariation and Itô’s Formula

  • Nancy Université

Research output: Chapter in Book/Report/Conference proceedingChapterpeer-review

Abstract

We show, in an abstract framework, that the quadratic variation is stable by C1 functions, and we express Itô formulae for C2 functions of finite quadratic variation processes. We apply those formulae to semimartingales, and we illustrate a first approach to stochastic differential equations (driven by a forward or Itô integral). We also introduce the Lévy area between two processes by regularizations methods.

Original languageEnglish
Title of host publicationBocconi and Springer Series
PublisherSpringer-Verlag Italia s.r.l.
Pages199-232
Number of pages34
DOIs
Publication statusPublished - 1 Jan 2022

Publication series

NameBocconi and Springer Series
Volume11
ISSN (Print)2039-1471
ISSN (Electronic)2039-148X

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