2294 CHAPTER 67. THE EASY ITO FORMULA

because

limn→∞

(mn−1

∑k=0

X(tk,tk+1] (t)FX (tk,X (tk))

)Φ0 = FX (t,X (t))Φ0

in L2([0,T ]×Ω;L2

(Q1/2U,H

)). Next consider the first on the right in 67.3.10. It equals

mn−1

∑k=0

(FX (tk,X (tk))φ 0 (tk+1− tk))

and converges to ∫ T

0FX (t,X (t))φ 0dt.

Finally, it is obviously the case that 67.3.3 converges to∫ T

0Ft (t,X (t))dt

This has shown

F (T,X (T )) = F (0,X0)+∫ T

0Ft (t,X (t))+FX (t,X (t))φ 0dt

+∫ T

0FX (t,X (t))Φ0dW +

12

∫ T

0(FXX (t,X (t))Φ0,Φ0)L2(Q1/2U,H) dt

whenX (t) = X0 +

∫ t

0φ 0ds+

∫ t

0Φ0dW,

φ 0,Φ0F0 measurable as described above. This is the first version of the Ito formula.

67.4 The Case Of Elementary FunctionsOf course there was nothing special about the interval [0,T ] . It follows that for [a,b] ⊆[0,T ] , Φa ∈L (U1,U) and Fa measurable, having finitely many values, φ a a simple func-tion which is Fa measurable,

X (t) = X (a)+∫ t

aφ adt +

∫ t

aΦadW

F (b,X (b)) = F (a,X (a))+∫ b

a(Ft (t,X (t))+FX (t,X (t))φ a)dt

+∫ b

aFX (t,X (t))ΦadW +

12

∫ b

a(FXX (t,X (t))Φa,Φa)L2(Q1/2U,H) dt.

Therefore, if Φ is any elementary function, being a sum of functions like ΦaX(a,b], and φ

a similar sort of elementary fuction with

X (t) = X0 +∫ t

0φds+

∫ t

0ΦdW,

2294 CHAPTER 67. THE EASY ITO FORMULAbecausenoomn—1lim ( YL tgthegy) (1) Fx (te. ¥ «)) By = Fy (t,X (t)) Bok=0in L? ((0,T] x Q;Z (Q'/2U,H)). Next consider the first on the right in 67.3.10. It equalsmn—1Yo (Fx (te X (te) Oo (tee —th))k=0and converges to[ Fy (t,X ()) @odt.Finally, it is obviously the case that 67.3.3 converges to[ FxioyarJOThis has shownF (T,X (T)) = F (0,X0) + fr (t,X (t)) + Fx (t,X (t)) OodtT 1 Tv+f F(X (0) boaw+5 | (Fx (t,X (1) Po, Po) y (aun) ttwhen ; 'X(t) =Xo+ | bods + I bydW,0 0$9, Po-Fo measurable as described above. This is the first version of the Ito formula.67.4 The Case Of Elementary FunctionsOf course there was nothing special about the interval [0,7]. It follows that for [a,b] C[0,7], Pa € Z(U,U) and FY, measurable, having finitely many values, ¢, a simple func-tion which is .¥,, measurable,X(t) =x(a)+ [> oat + [ oawF(WX() =F (aX (a))+ [ (EX (0) + F(X) 2)b 1 re+f Fx (x(n) eaw+; | (Fxx (1,X (1) Pa, Pa) gy (Qu2u.n) atTherefore, if is any elementary function, being a sum of functions like ®, 2(_ 4), and @a similar sort of elementary fuction witht tX()=%o+ f ods+ | od,0 0