Small time path behavior of double stochastic integrals and applications to stochastic control

dc.creatorCheridito, Patrick
dc.creatorSoner, H. Mete
dc.creatorTouzi, Nizar
dc.date2006-02-21
dc.date.accessioned2026-07-07T07:03:38Z
dc.date.available2026-07-07T07:03:38Z
dc.descriptionWe study the small time path behavior of double stochastic integrals of the form $\int_0^t(\int_0^rb(u) dW(u))^T dW(r)$, where $W$ is a $d$-dimensional Brownian motion and $b$ is an integrable progressively measurable stochastic process taking values in the set of $d\times d$-matrices. We prove a law of the iterated logarithm that holds for all bounded progressively measurable $b$ and give additional results under continuity assumptions on $b$. As an application, we discuss a stochastic control problem that arises in the study of the super-replication of a contingent claim under gamma constraints.
dc.descriptionPublished at http://dx.doi.org/10.1214/105051605000000557 in the Annals of Applied Probability (http://www.imstat.org/aap/) by the Institute of Mathematical Statistics (http://www.imstat.org)
dc.identifierhttps://arxiv.org/abs/math/0602453
dc.identifierhttp://arxiv.org/abs/math/0602453
dc.identifierAnnals of Applied Probability 2005, Vol. 15, No. 4, 2472-2495
dc.identifierdoi:10.1214/105051605000000557
dc.identifier.urihttp://salesiana.dossiersoluciones.com/handle/123456789/109047
dc.subjectProbability
dc.subject60G17, 60H05, 60H30, 91B28 (Primary)
dc.titleSmall time path behavior of double stochastic integrals and applications to stochastic control
dc.typetext

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