2256 CHAPTER 65. STOCHASTIC INTEGRATION

Proof: It follows from Proposition 62.7.5 that τn is a stopping time because it is thefirst hitting time of a closed set by an adapted continuous process.

It remains to verify the two claims. There exists a set of measure 0, N such that forω /∈ N ∫ T

a∥Φ∥2

L2(Q1/2U,H) dt < ∞

Therefore, for such ω, there exists n large enough that∫ t

a∥Φ∥2

L2(Q1/2U,H) ds < n

and so τn (ω)≥ t. Now consider the second claim.

E(∫ T

a

∥∥X[a,τn]Φ∥∥2

L2(Q1/2U,H) dt)

= E(∫

τn(ω)∧T

a∥Φ∥2

L2(Q1/2U,H) dt)≤ E (n) = n.

With this lemma, it is possible to give the following definition.

Definition 65.10.3 Suppose Φ is L2(Q1/2U,H

)progressively measurable and

P([∫ T

a∥Φ∥2

L2(Q1/2U,H) ds < ∞

])= 1. (65.10.18)

More generally, suppose there exists a localizing sequence of stopping times τn having thetwo properties of Lemma 65.10.2. Then for all ω not in the exceptional set N.∫ t

aΦdW ≡ lim

n→∞

∫ t

aX[a,τn]ΦdW

Lemma 65.10.4 The above definition is well defined. For all ω not in a set of measurezero, ∫ t

aΦdW (ω)≡ lim

n→∞

∫ t

aX[a,τn]ΦdW (ω)

the function on the right being constant for all n large enough for a given ω . The randomvariable

∫ ta ΦdW is also Ft adapted.

Proof: Let {τn} be a sequence of stopping times as described in 1 and 2 of Lemma65.10.2. Such a sequence exists by Lemma 65.10.2. It makes sense to define the randomvariable ∫ t

aX[a,τn]ΦdW

Now what if both τm and τn are at least as large as t for some ω? Do the two randomvariables coincide at that value of ω? Say m > n so that τm (ω)≥ τn (ω)> t. For the givenω, ∫ t

aX[a,τm]ΦdW =

∫ t∧τm

aX[a,τm]ΦdW

2256 CHAPTER 65. STOCHASTIC INTEGRATIONProof: It follows from Proposition 62.7.5 that Tt, is a stopping time because it is thefirst hitting time of a closed set by an adapted continuous process.It remains to verify the two claims. There exists a set of measure 0, N such that forogNT||? dt <0[ l@eaco2v.Therefore, for such @, there exists n large enough thattrep) 2 ds<n[ I II'2,(012u.H)and so T, (@) >t. Now consider the second claim.r 2E( | InsT(@g (@!/7U,H) ar)(@)AT 2= E([ lelefovsumdt) SE)With this lemma, it is possible to give the following definition.Definition 65.10.3 Suppose ® is Ly (ol/ °U,H ) progressively measurable andTo(|/ lle, (ovrv.n) ds < ~|) =1. (65.10.18)More generally, suppose there exists a localizing sequence of stopping times T, having thetwo properties of Lemma 65.10.2. Then for all @ not in the exceptional set N.t[ea = him 2p, «bawa n—y0oLemma 65.10.4 The above definition is well defined. For all @ not in a set of measurezero,t[ eaw (o) = him l Fia.j PAW (0)no |the function on the right being constant for ail n large enough for a given @. The randomvariable {' dW is also F; adapted.Proof: Let {t,,} be a sequence of stopping times as described in 1 and 2 of Lemma65.10.2. Such a sequence exists by Lemma 65.10.2. It makes sense to define the randomvariablet| FaraPawNow what if both T,, and T, are at least as large as t for some @? Do the two randomvariables coincide at that value of @? Say m >n so that T,(@) > T,(@) >t. For the givenQ,t\Tm[ Zar eaw =|” Baz, bdW