906 CHAPTER 33. QUADRATIC VARIATION AND STOCHASTIC INTEGRATION

Now

n∫ 0

−1/n

∫ T

0∥ f (t + s)− f (t)∥2 dtds

≤ 2n∫ 0

−1/n

∫ T

0∥ f (t + s)∥2 dtds+2n

∫ 0

−1/n

∫ T

0∥ f (t)∥2 dtds

≤ 4∫ T

0∥ f (t)∥2 ds

which by definition is in L1 (Ω) . Therefore, the integrands

n∫ 0

−1/n

∫ T

0∥ f (t + s)− f (t)∥2 dtds

converge to 0 by continuity of translation in L2 and are uniformly integrable. By Vitaliconvergence theorem, limn→∞ ∥ fn− f∥2

L2(Ω×[0,T ];L2(U,H)) = 0.I want to use the fundamental inequality 33.31 which has only been presented above

for f bounded. Therefore, let gn (t,ω) ≡ Pmn ( f (t,ω)) where Pmn is the projection ontoB(0,mn) in the Hilbert space L2 (U,H). As follows from the definition, one can obtain aninner product for the norm in this Banach space in the form ( f ,g) ≡ ∑

∞k=1 ( f (ei) ,g(ei))H

where {ei} is some orthonormal basis for U . Now Pmn is Lipschitz continuous and if mn islarge enough, ∥gn− fn∥L2(Ω×[0,T ];L2(U,H)) < 2−n and so gn (t,ω) is bounded and continuousand adapted and

limn→∞∥gn− f∥L2(Ω×[0,T ];L2(U,H)) = 0 (33.33)

With this preparation, here is the main result.

Theorem 33.6.3 Let f be adapted and in L2 (Ω× [0,T ] ;L2 (U,H)) . Then thereexists a sequence {gn} of adapted functions continuous in t such that

limn→∞∥gn− f∥2

L2(Ω×[0,T ];L2(U,H)) = limn→∞

∫Ω

∫ T

0∥gn− f∥2 dtdP = 0

Also it follows that∫ t

0 gndM is a Cauchy sequence in M 2T (H) converging to a continuous

martingale denoted as∫ t

0 f dM in M 2T (H). In addition, for f ∈ L2 (Ω× [0,T ] ;L2 (U,H)) ,

adapted, the fundamental inequality holds.

12

E

(sup

t∈[0,T ]

∥∥∥∥∫ t

0f dM

∥∥∥∥2)≤∫

∫ T

0∥ f∥2

L2dtdP

If M is only a local martingale, then the same inequality is valid. Also, if σ is any stoppingtime, ∫ t∧σ

0f dM =

∫ t

0f dMσ

Proof: It follows from the above argument there exists a sequence of adapted continu-ous, bounded, functions converging to f in L2 (Ω× [0,T ] ;L2 (U,H)) . Therefore,

limm,n→∞

12

E

(sup

t∈[0,T ]

∥∥∥∥∫ t

0(gn−gm)dM

∥∥∥∥2)≤ lim

m,n→∞

∫Ω

∫ T

0∥gn−gm∥2 dtdP = 0

906 CHAPTER 33. QUADRATIC VARIATION AND STOCHASTIC INTEGRATIONNow0 Tnf Weer lPaeso 7? 0 9/7nf Ife+s)[Pards+2n [| If (t)||2atds4 [ireolrasIAIAwhich by definition is in L' (Q). Therefore, the integrandsnf, [ P(e +5) — f (t) | dtdsconverge to 0 by continuity of translation in L? and are uniformly integrable. By Vitaliconvergence theorem, limps || fn — f licaxtor}: 2(u,H)) = 9-I want to use the fundamental inequality 33.31 which has only been presented abovefor f bounded. Therefore, let g,(t,@) = Pn, (f(t,@)) where P,,, is the projection ontoB(0,m,) in the Hilbert space -% (U,H). As follows from the definition, one can obtain aninner product for the norm in this Banach space in the form (f,g) = Ve_, Uf (ei), 8 (ei) ) 9where {e;} is some orthonormal basis for U. Now P,,,, is Lipschitz continuous and if m, islarge enough, ||&n — fnll72(9(0,7];4(U,H)) <2 "and so g» (t, @) is bounded and continuousand adapted andjim I|gn — F\l12(0«(0,7):A(U,H)) =0 (33.33)With this preparation, here is the main result.Theorem 33.6.3 Let f be adapted and in L?(Q x {0,T|;-4(U,H)). Then thereexists a sequence {g,} of adapted functions continuous in t such thatlim llgn~ flzsoxerxaway = im, [, [ln Fleder =oAlso it follows that fo gndM is a Cauchy sequence in M; (H) converging to a continuousmartingale denoted as fj fdM in 4} (H). In addition, for f € L? (Q x [0,T|;A(U,H)),adapted, the fundamental inequality holds.ry by 5< dtdP< fff init,1~E | sup2 ( I [0,7]If M is only a local martingale, then the same inequality is valid. Also, if 0 is any stoppingtime,t\O t[ fdM = [ fdM°0 0Proof: It follows from the above argument there exists a sequence of adapted continu-ous, bounded, functions converging to f in L” (Q x [0,T];-Z (U,H)). Therefore,t 2 T[ (en an) )< lim Lf \l2n — ml|" dtdP = 00 mn JQ JOm,n—roo 1€(0,7]i (lim =E|{ sup