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Malliavin Calculus for Lévy Processes with Applications to Finance (Universitext)

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There are already several excellent books on Malliavin calculus. However, most of them deal only with the theory of Malliavin calculus for Brownian motion, with [35] as an honorable exception. Moreover, most of them discuss only the application to regularity results for solutions of SDEs, as this was the original motivation when Paul Malliavin introduced the infinite-dimensional calculus in 1978 in [157]. In the recent years, Malliavin calculus has found many applications in stochastic control and within finance. At the same time, L´evy processes have become important in financial modeling. In view of this, we have seen the need for a book that deals with Malliavin calculus for L´evy processes in general, not just Brownian motion, and that presents some of the most important and recent applications to finance.

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