63.7. DOOB MEYER DECOMPOSITION 2167

Thus[T n (ε)≤ s] = ∩∞

N=1∪r∈D∩[s,s+ 1N ) [ξ

n (r,ω)−λ ∧A(r,ω)> ε]

and each ∪r∈D∩[s,s+ 1N ) [ξ

n (r,ω)−λ ∧A(r,ω)> ε] ∈Fs+1/N and so

[T n (ε)≤ s] ∈ ∩r∈D,r≥sFr = Fs+ = Fs

due to the assumption that the filtration is normal. What if s≥ a? Then from the definition,[T n (ε)≤ a] = Ω ∈Fa. Thus this really is a stopping time.

Now let B j ≡[tn

j−1 < T n (ε)≤ tnj

]. Note that T n (ε)∧ tn

j is also a stopping time.

∫Ω

ξnT n(ε)dP =

mn

∑j=1

∫B j

ξnT n(ε)dP =

mn

∑j=1

∫B j

ξnT n(ε)∧tn

jdP

=mn

∑j=1

∫B j

E(

ξnT n(ε)∧tn

j|FT n(ε)∧tn

j

)dP.

This is because B j ∈FT n(ε)∧tnj. Thus from the definition, the above equals

=mn

∑j=1

∫B j

E(

E(

λ ∧A(tn

j)|FT n(ε)∧tn

j

)|FT n(ε)∧tn

j

)dP

=mn

∑j=1

∫B j

E(

λ ∧A(tn

j)|FT n(ε)∧tn

j

)dP

=mn

∑j=1

∫B j

λ ∧A(tn

j)

dP =∫

λ ∧A(⌈T n (ε)⌉)dP (63.7.40)

where on (tnj−1, t

nj ], ⌈T n (ε)⌉ ≡ tn

j . Now ⌈T n (ε)⌉ is also a bounded stopping time. Here iswhy. Suppose s ∈ (tn

j−1, tnj ]. Then

[⌈T n (ε)⌉ ≤ s] =[T n (ε)≤ tn

j−1]∈Ftn

j−1⊆Fs.

Now letQn ≡ sup

t∈[0,a]|ξ n (t)−λ ∧A(t)| .

Then first note that

[Qn > ε] =

[sup

t∈[0,a)|ξ n (t)−λ ∧A(t)|> ε

]

because Qn (a) = 0 follows from the definition of ξn (t) as

E(λ ∧A

(tn

j)|Ft)

for tnj−1 < t ≤ tn

j

and soξ

n (a) = E (λ ∧A(a) |Fa) = λ ∧A(a) .

63.7. DOOB MEYER DECOMPOSITION 2167Thus[T” (€) < 5] = AWw=1 Urepnis.st b) (6” (7, @) —A AA (7, @) > Eand each U,<prjs,s+4) [6"(7,@) —A AA(r,@) > €] € F,41/y and so[T" (€) < 5] € NreDyr>sFr = Fo =F,due to the assumption that the filtration is normal. What if s > a? Then from the definition,[T” (€) <a] =Q € Fg. Thus this really is a stopping time.Now let Bj = ler <T"(e)< "| . Note that T” (€) 17 is also a stopping time.[ Sime) dP = LI Sime dP =) | Srn(e) an PBj jan;= d he (Ein eynut Frmceyavt) dP.This is because Bj € Fyn ¢) Ath Thus from the definition, the above equals= L/,F( (ArA(0 tt) | Fyn newt) |Frmeynt dP= E /o( (ArA(0 1) | F rn(eynut ) AP= LI, ANA (t") dP = fanat (T" (e)]) dP (63.7.40)where on (¢7_ 1,7], [T" (€)| =t. Now [T" (€)] is also a bounded stopping time. Here iswhy. Suppose s é (| ,07]. Then[[7" (€) < 5] = [T” (€) < ti | € Fu, Cc Fs.Now letQ, = sup |€"(t)-AAA(t)|.te [0,a]Then first note that[O, > €]= | sup |E"(t)-AAA(t)| >te[0,a)because Q, (a) = 0 follows from the definition of €" (t) asE (AAA (ti) |F;) for ti» <t<t?and so5" (a) =E(AAA(a)|-Fa) =A AA(a).