2206 CHAPTER 64. WIENER PROCESSES

and consider E(eiP). This equals

eiP = E

(exp

(i

n

∑q=1

m

∑j=1

sq j

((W (tq) ,ek j

)U−(

W(tq−1

),ek j

)U

)))(64.5.30)

= E

(exp

(i

n

∑q=1

((W (tq) ,

m

∑j=1

sq jek j

)U

(W(tq−1

),

m

∑j=1

sq jek j

)U

)))

= E

(n

∏q=1

exp

(i

(W (tq)−W

(tq−1

),

m

∑j=1

sq jek j

)U

))Now recall that by assumption the increments W (t)−W (s) are independent. Therefore,the above equals

n

∏q=1

E

(exp

(i

(W (tq)−W

(tq−1

),

m

∑j=1

sq jek j

)U

))

Recall that by assumption (W (t)−W (s) ,h)U is normally distributed with variance givenby the expresson (t− s)(Qh,h) and mean 0. Therefore, the above equals

n

∏q=1

exp

(−1

2(tq− tq−1

)(Q

m

∑j=1

sq jek j ,m

∑j=1

sq jek j

))

=n

∏q=1

exp

(−1

2(tq− tq−1

) m

∑j=1

s2q jλ k j

)

exp

(−1

2

n

∑q=1

m

∑j=1

(tq− tq−1

)s2

q jλ k j

)(64.5.31)

Alson

∏q=1

n

∏j=1

E(

exp(

isq j

((W (tq) ,ek j

)U−(

W(tq−1

),ek j

)U

)))(64.5.32)

=n

∏q=1

n

∏j=1

E(

exp(

isq j

((W (tq)−W

(tq−1

),ek j

)U

)))=

n

∏q=1

n

∏j=1

exp(−1

2(tq− tq−1

)s2

q j

(Qek j ,ek j

))

=n

∏q=1

n

∏j=1

exp(−1

2(tq− tq−1

)s2

q jλ k j

)

= exp

(−1

2

n

∑q=1

m

∑j=1

(tq− tq−1

)s2

q jλ k j

)

2206 CHAPTER 64. WIENER PROCESSESand consider E (e”) . This equalsé re (0 Es uv ((w w)ots)y~(We)#4),)) (645.30“oleate boot)(ho (om-+tfp))Now recall that by assumption the increments W (t) —W - are independent. Therefore,the above equalsn m[EZ [ exp [i | W (tq) — W (ty-1). ¥ sqiek,q=l j=l URecall that by assumption (W (t)—W (s),h)y is normally distributed with variance givenby the expresson (t — s) (Qh,h) and mean 0. Therefore, the above equalsn 1 m m[Tex “5 (tg —tq-1) { Q D Saiek De Saiekqe j= J=itsqe I=(tq —tg-1) 84 7) (64.5.31)AlsoHe (exp (isa, ((w (t,) et), - (w (t-1) -e;),,))) (64.5.32)