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Bibliographic Details
Main Authors: Nam, Kihun, Xu, Yunxi
Format: Preprint
Published: 2025
Subjects:
Online Access:https://arxiv.org/abs/2506.22213
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Table of Contents:
  • In this article, we show necessary and sufficient conditions for a function to transform a continuous Markov semimartingale to a semimartingale. As a result, the no-arbitrage principle guarantees the differentiability of asset prices with respect to the underlying noise, if the asset prices are continuous and the underlying noise is a continuous Markov semimartingale.