Seminar on Stochastic Analysis Random Fields and Applications VII : Centro Stefano Franscini Ascona May 2011 This book presents refereed research or review articles presented at the 7th Seminar on Stochastic Analysis Random Fields and Applications which was held at the Centro Stefano Franscini (Monte Verità) in Ascona Switzerland in May 2011. The seminar mainly focused on: • stochastic (partial) differential equations especially with regard to jump processes construction of solutions and approximations • Malliavin calculus and Stein methods and other techniques in stochastic analysis especially chaos representations and convergence and applications to models of interacting particle systems • stochastic methods in financial models especially models for power markets or for risk analysis empirical estimation and approximation stochastic control and optimal pricing. The notes of the public lecture held by Nicolas Bouleau on the fundamental question of whether there can be an excessive mathematization of the world in an economic context are also included. The book will be a valuable resource for researchers working in stochastic analysis and for professionals interested in stochastic methods in finance. Contributors: R. Balan F.E. Benth F. Biagini N. Bouleau S. Cawston C. Ceci R. Cogo G. Di Nunno R. Eden H. Eyjolfsson B. Ferrario D. Filipovic A. Gombani I. Gyöngy B. Jourdain A. Kohatsu Higa T. Lim V. Ly Vath V. Mandrekar C. Marinelli L.M. Morato H. L. Ngo I. Nourdin G. Peccati B. Rüdiger W.J. Runggaldier J. M. Sahut M. Sbai S. Scotti S. Sjursen R. Speicher S.S. Sritharan W. Stannat P.R. Stinga S. Tappe S. Ugolini A.R.L. Valdez T. Vargiolu F. Viens L. Vostrikova M. Xu. Foreword Public lecture by N. Bouleau Can there be excessive mathematization of the world Part I: Stochastic analysis and random fields R. Balan Recent advances related to SPDEs with fractional noise G. Di Nunno S.Sjursen On chaos representation and orthogonal polynomials for the doubly stochastic Poisson process R. Eden F. Viens General upper and lower tail estimates using Malliavin calculus and Steins equations B. Ferrario Uniqueness and absolute continuity for semilinear SPDEs I. Gyöngy P.R. Stinga Rate of convergence of Wong Zakai approximations for SPDEs A. Kohatsu Higa H L. Ngo Weak approximations for SDEs driven by Lévy processes V. Mandrekar B. Ruediger S. Tappe Itôs formula for Banach space valued jump processes driven by Poisson random measures C. Marinelli Well posedness for a class of dissipative stochastic evolution equations with Wiener and Poisson noise L.M. Morato S. Ugolini Localization of relative entropy in Bose Einstein condensation of trapped interacting bosons I. Nourdin G. Peccati R. Speicher Multidimensional semicircular limits on the free Wigner chaos S.S. Sritharan and M. Xu Malliavin Calculus for stochastic point vortex and Lagrangian models W. Stannat Two remarks on the Wasserstein Dirichlet form J. Manuel Erratum Part II: Stochastic methods in financial models F. Biagini Evaluating hybrid products: the interplay between financial and insurance markets F.E. Benth H. Eyjolfsson Stochastic modeling of power markets using stationary processes S. Cawston L. Vostrikova F divergence minimal equivalent martingale measures and optimal portfolios for exponential Lévy models with a change point C. Ceci Optimal investment consumption for partially observed jump diffusions R. Cogo A. Gombani W.J. Runggaldier Stochastic control and pricing under swap measures D. Filipovic Variance swap curve models B. Jourdain M. Sbai. Efficient second order weak scheme for stochastic volatility models T. Lim V. Ly Vath J M. Sahut S. Scotti Bid ask spread modelling a perturbation approach A.R.L. Valdez T. Vargiolu Optimal portfolio in a regime switching model.