63.7. DOOB MEYER DECOMPOSITION 2163

Since ξ is bounded, you can take the limit outside. This follows from the dominatedconvergence theorem and the fact, shown above that A is increasing and nonnegative. Hereis why.

0≤∣∣∣ξ (tnk

j−1

)∣∣∣A(tnkj

)≤ A(a)C

where C is a constant larger than the values of ξ . Thus the above equals

limk→∞

E

(mnk

∑j=1

ξ

(tnk

j−1

)(A(

tnkj

)−A

(tnk

j−1

)))

= limk→∞

E

(mnk

∑j=1

ξ

(tnk

j−1

)(X(

tnkj

)−M

(tnk

j

)−(

X(

tnkj−1

)−M

(tnk

j−1

))))

= limk→∞

E

(mnk

∑j=1

ξ

(tnk

j−1

)(X(

tnkj

)−X

(tnk

j−1

)))(63.7.38)

because

E(

ξ

(tnk

j−1

)M(

tnkj

))= E

(E(

ξ

(tnk

j−1

)M(

tnkj

)|Ft

nkj−1

))= E

(tnk

j−1

)E(

M(

tnkj

)|Ft

nkj−1

))= E

(tnk

j−1

)M(

tnkj−1

))since M is a martingale. Now by a similar trick, this time using that

{Mnk

(tnk

j

)}mnk

j=0is a

martingale, 63.7.38 equals

limk→∞

E

(mnk

∑j=1

ξ

(tnk

j−1

)(Ank(

tnkj

)−Ank

(tnk

j−1

)))(63.7.39)

and now recall that Ank

(tnk

j

)is Ft

nkj−1

measurable. This will now be used to change the

subscript of tnkj−1 in ξ

(tnk

j−1

)to a j. 63.7.39 equals

= limk→∞

mnk

∑j=1

E(

E(

ξ

(tnk

j

)|Ft

nkj−1

)(Ank(

tnkj

)−Ank

(tnk

j−1

)))

= limk→∞

mnk

∑j=1

E(

E(

ξ

(tnk

j

)(Ank(

tnkj

)−Ank

(tnk

j−1

))|Ft

nkj−1

))

= limk→∞

mnk

∑j=1

E(

ξ

(tnk

j

)(Ank(

tnkj

)−Ank

(tnk

j−1

)))= lim

k→∞E

(mnk

∑j=1

ξ

(tnk

j

)(Ank(

tnkj

)−Ank

(tnk

j−1

)))

63.7. DOOB MEYER DECOMPOSITION 2163Since € is bounded, you can take the limit outside. This follows from the dominatedconvergence theorem and the fact, shown above that A is increasing and nonnegative. Hereis why.0< IE Gay \A Ge <A(a)Cwhere C is a constant larger than the values of €. Thus the above equalssine (Ses (ts) (a(#") -a (#4)~ pone (358 (05) (C94) — (4) (0 (#s)-™ 05))))~pme (Ss (ss)(«()-x(@4))) arae(e(m)a(@)) = e(e(5(a)H(@)i%,))e(E(H)2(™ (6) %,))e(6 (su) (#4)since M is a martingale. Now by a similar trick, this time using that {mr («i \} a isajzbecausemartingale, 63.7.38 equalslim E (xs (eik,) (at (ath) <a (1 )) (63.7.39)and now recall that A” Ga is F ik measurable. This will now be used to change thej-lsubscript of 7", in € (#74,) toa j. 63.7.39 equals= gin Be (#(5(H") i%a,) (0 4" (4)))= jim de (@(5 (0) (o" G)-" (0)),))= sine (6(9) (0 (7) a (2)= limE (x (7) (a" (1) — Ark @))