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On stochastic integration for volatility modulated Brownian-driven Volterra processes via white noise analysis (1303.4625v1)

Published 19 Mar 2013 in math.PR

Abstract: This paper generalizes the integration theory for volatility modulated Brownian-driven Volterra processes onto the space G* of Potthoff-Timpel distributions. Sufficient conditions for integrability of generalized processes are given, regularity results and properties of the integral are discussed. We introduce a new volatility modulation method through the Wick product and discuss its relation to the pointwise-multiplied volatility model.

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