32.5. THE BURKHOLDER DAVIS GUNDY INEQUALITY 877

Then there exists t < T such that [M] (t)> β2λ

2. This time, let

N (t)≡ [M] (t)− [Mτ ] (t)−∥M (t)−Mτ (t)∥2

This is still a martingale since by Corollary 32.4.3

[M] (t)− [Mτ ] (t) = [M−Mτ ] (t)

Claim: N (t)(ω) hits λ2(

1−δ2)

for some t < T for ω ∈ Sr.

Proof of claim: Fix such a ω ∈ Sr. Let t < T be such that [M] (t)> β2λ

2. Then, sinceβ > 2, t > τ and so for that ω,

N (t) > β2λ

2−λ2−∥M (t)−M (τ)∥2

≥ (β −1)2λ

2− (∥M (t)∥+∥M (τ)∥)2

≥ (β −1)2λ

2− r2δ

2 ≥ λ2−δ

2

By the intermediate value theorem, it hits λ2(

1−δ2). The last inequality follows because

it is assumed that 2M∗ ≤ rδλ . This proves the claim.Claim: N (t)(ω) never hits −δ

2 for ω ∈ Sr.Proof of claim: By Corollary 32.4.3, if it did at t, then t > τ because N (t) = 0 for

t ≤ τ, and so

0 ≤ [M] (t)− [Mτ ] (t) = ∥M (t)−M (τ)∥2−δ2λ

2

≤ (∥M (t)∥+∥M (τ)∥)2−δ2λ

2 ≤ r2δ

2−δ2λ

2 < 0,

a contradiction. The last inequality follows from 2M∗ ≤ rδλ on Sr. This proves the claim.It follows that for each r ∈ (0,1) ,

P(Sr)≤ P(

N (t) hits λ2(

1−δ2)

before −δ2λ

2)

By Theorem 31.6.3 this is no larger than

P([N∗ > 0])δ

2

λ2(

1−δ2)+δ

2= P([N∗ > 0])δ

2

≤ P([τ < ∞])δ2 = P

([([M] (T ))1/2 > λ

])δ

2

Now by the good lambda inequality, there is a constant k independent of M such that∫Ω

F(([M] (T ))1/2

)dP≤ k

∫Ω

F (2M∗)dP≤ kC2

∫Ω

F (M∗)dP

by the assumptions about F . Therefore, combining this result with the first part,

(kC2)−1∫

F(([M] (T ))1/2

)dP ≤

∫Ω

F (M∗)dP

≤ C∫

F(([M] (T ))1/2

)dP ■

Of course, everything holds for local martingales in place of martingales.

32.5. THE BURKHOLDER DAVIS GUNDY INEQUALITY 877Then there exists t < T such that [M](t) > B”A7. This time, let2N (t) = [M] (t) —[M*] (t) — ||M(t) —M* (1) ||This is still a martingale since by Corollary 32.4.3[M] (¢) —[M*] (t) = [M—M*](r)Claim: N (t) (@) hits 47 (1 — 5°) for some t < T for @ € S,.Proof of claim: Fix such a @ € S,. Let t < T be such that [M] (t) > B?A7. Then, sinceB >2,t> Tt and so for that a,N(t) > B’A?—A?—|\M(t)—M(a)|/?> (B—1)°A*—(||M(@)|| + IM (aI)?> (B-1P A —P 8A? >17?-87A7By the intermediate value theorem, it hits A? (1 — 5°) . The last inequality follows becauseit is assumed that 2M* < rd. This proves the claim.Claim: N (t) (@) never hits —57A7 for @ € S,.Proof of claim: By Corollary 32.4.3, if it did at t, then t > t because N(t) = 0 fort <T, and so[M] (¢) — [M*] (t) = ||M(t) —M(t)|? — 8°?(|| (¢)|| + ||M (2)|)? — 8°07 < 7°80? — 870? <0,IA IAa contradiction. The last inequality follows from 2M* < réA on S,. This proves the claim.It follows that for each r € (0,1),P(S,) < P(N(t) hits A (1-8?) before — 6°27)By Theorem 31.6.3 this is no larger thanwieV (1-8) +8?P((N* > 0}) = P([N* > 0]) 8?<P((e<e]) 5° =P([((Mj(7))"? > a]) 8Now by the good lambda inequality, there is a constant k independent of M such that| F (i (7))""") dP < kf F (2M*)dP < KC | F (M*)dPQ Q Qby the assumptions about F’. Therefore, combining this result with the first part,(kCy)~! | F (((m) (7))"”) dP < | F (M*)dPQ Qcf F ((M\(7))'?) apQOf course, everything holds for local martingales in place of martingales.IA