Juliang Yin

SHORT RESEARCH ARTICLE Funding information: This work is supported by the National Natural Science Foundation of China (61977037 and 61973096). Abstract This paper provides a novel Lyapunov theorem on finite-time stability of stochastic homogeneous systems. Different from the existing results, the differential operator L V $$ \mathcal{L}V $$ in this paper is not required to be negative definite and could be negative semidefinite. The obtained condition is somehow similar to the LaSalle's condition.

1. Introduction The concept of value adjustment for financial derivatives started to gain popularity after the financial crisis in 2008. The industry regulations, such as the Basel regulations and the International Financial Reporting Standards (IFRS), are beginning to require the financial institutions to charge the counterparty a premium to balance the credit risk. This premium is often called credit valuation adjustment (CVA), and Ref.