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Treffer: On Novikov and arbitrage properties of multidimensional diffusion processes with exploding drift

Title:
On Novikov and arbitrage properties of multidimensional diffusion processes with exploding drift
Authors:
Source:
Statistics & probability letters. 46(1):43-51
Publisher Information:
Amsterdam: Elsevier, 2000.
Publication Year:
2000
Physical Description:
print, 17 ref
Original Material:
INIST-CNRS
Document Type:
Fachzeitschrift Article
File Description:
text
Language:
English
Author Affiliations:
Department of Finance, University of Ulm, Helmholtzstrasse 18, 89081 Ulm, Germany
ISSN:
0167-7152
Rights:
Copyright 2000 INIST-CNRS
CC BY 4.0
Sauf mention contraire ci-dessus, le contenu de cette notice bibliographique peut être utilisé dans le cadre d’une licence CC BY 4.0 Inist-CNRS / Unless otherwise stated above, the content of this bibliographic record may be used under a CC BY 4.0 licence by Inist-CNRS / A menos que se haya señalado antes, el contenido de este registro bibliográfico puede ser utilizado al amparo de una licencia CC BY 4.0 Inist-CNRS
Notes:
Mathematics

Operational research. Management
Accession Number:
edscal.1248151
Database:
PASCAL Archive

Weitere Informationen

We investigate properties of processes X, which are weak solutions of multidimensional stochastic differential equations of the form dXt = b(t,Xt)dt + dWt, We show that under certain non-stochastic conditions the solution Xt itself satisfies a uniform Novikov property. Consequently, it will follow that under these assumptions the no arbitrage property of Xt can be obtained by applying the Girsanov theorem twice (in reverse directions). For the sake of illustration, some examples with exploding drifts b are presented.