Source: wikibot/tanaka-s-formula
= Tanaka's formula
{wiki=Tanaka's_formula}
Tanaka's formula is a result in stochastic calculus that provides a way to express the solution of a stochastic differential equation (SDE) in terms of the Itô integral and the quadratic variation of a continuous local martingale. The formula is particularly significant because it allows for the computation of expectations involving the stochastic processes that satisfy certain SDEs.