890 CHAPTER 33. QUADRATIC VARIATION AND STOCHASTIC INTEGRATION

Then by the Borel Cantelli lemma, the ω in infinitely many of the sets[X∗n,n+1 (T )> 2−n]

has measure 0. Denoting this exceptional set as N, it follows that for ω /∈ N, there existsn(ω) such that for n > n(ω) ,

supt∈[0,T ]

∥∥∥∥∫ t

0fndM−

∫ t

0fn+1dM

∥∥∥∥≤ 2−n

and this implies uniform convergence of{∫ t

0 fndM}

. Letting

G(t) = limn→∞

∫ t

0fndM,

for ω /∈N and G(t) = 0 for ω ∈N, it follows that for each t, the continuous adapted processG(t) equals

∫ t0 f dM a.e. Thus

{∫ t0 f dM

}has a continuous version.

It suffices to verify 33.12. Let { fn} and {gn} be sequences of elementary functionsconverging to f and g in GM ∩GN . By Lemma 33.0.2,

E((∫ t

0fndM,

∫ t

0gndN

)U

)=∫

∫ t

0fngnd [M,N]

Then by the Holder inequality and the above definition,

limn→∞

E((∫ t

0fndM,

∫ t

0gndN

)U

)= E

((∫ t

0f dM,

∫ t

0gdN

)U

)Consider the right side which equals

14

∫Ω

∫ t

0fngnd [M+N]dP− 1

4

∫Ω

∫ t

0fngnd [M−N]dP

Now from Lemma 33.0.4,∣∣∣∣∫Ω

∫ t

0fngnd [M+N]dP−

∫Ω

∫ t

0f gd [M+N]dP

∣∣∣∣=

∣∣∣∣∫Ω

∫ t

0fngndνM+NdP−

∫Ω

∫ t

0f gdνM+NdP

∣∣∣∣≤ 2

(∫Ω

∫ t

0| fngn− f g|dνMdP+

∫Ω

∫ t

0| fngn− f g|dνNdP

)and by the choice of the fn and gn, these both converge to 0. Similar considerations applyto ∣∣∣∣∫

∫ t

0fngnd [M−N]dP−

∫Ω

∫ t

0f gd [M−N]dP

∣∣∣∣and show

limn→∞

∫Ω

∫ t

0fngnd [M,N] =

∫Ω

∫ t

0f gd [M,N] ■

890 CHAPTER 33. QUADRATIC VARIATION AND STOCHASTIC INTEGRATIONThen by the Borel Cantelli lemma, the @ in infinitely many of the sets[Xin (T) > 27")has measure 0. Denoting this exceptional set as N, it follows that for @ ¢ N, there existsn(q@) such that for n >n(o),supte [0,7]t t| jam — [ frvval| <2™0 0and this implies uniform convergence of { {j f,dM }. LettingtG(t)=lim | f,dM,0noofor o ¢ N and G(t) =0 for @ EN, it follows that for each r, the continuous adapted processG(t) equals fj fdM a.e. Thus { {} fdM} has a continuous version.It suffices to verify 33.12. Let {f,} and {g,} be sequences of elementary functionsconverging to f and g in Gy NGYy. By Lemma 33.0.2,° ( Cf Ina, ih gn ) ) -[[ "fan [M,N]Then by the Holder inequality and the above definition,t t t ttim £ (( [ fram. [end )=e((/ ram, [' san) )nro 0 0 U 0 0 UConsider the right side which equals1 t 1 tzh ff fost +lar—= | L fugnd (iM —NjaP4 Jo Jo 4 JoJoNow from Lemma 33.0.4,Lf foeuatm emar— ff fea iM + mar]t t= Lf taentvanae ff Fedvucvar|aJo a Jo<2(f [ Vin SldvndP+ [| nso — fal dvndP )and by the choice of the f;, and g,, these both converge to 0. Similar considerations applytoLf toenain—wjar— [reat —njarand showlim I [ " fagnd [M,N] = I [ " fed [M,N]n—-s0o