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Weighted power variations of fractional Brownian motion and application to approximating schemes (2007)

Abstract
The first part of the paper contains the study of the convergence for some weighted power variations of a fractional Brownian motion $B$ with Hurst index $H\in(0,1)$. The behaviour is different when $ H < \nicefrac{1}{2}$ and powers are odd, compared with the case when $H=\nicefrac{1}{2}$. In the second part, one applies the results of the first part to compute the exact rate of convergence of some approximating schemes associated to scalar stochastic differential equations driven by $B$. The limit of the error between the exact solution and the considered scheme (whose size depends on the Hurst index $H$) is computed explicitly.

Publication details
Download http://hal.archives-ouvertes.fr/hal-00130399/en/
Publisher HAL - CCSD
Repository CCSd/HAL : e-articles server (based on gBUS) (France)
Keywords Mathematics/Probability, Fractional Brownian motion, weighted power variations, stochastic differential equation, approximating scheme, exact rate of convergence
Language English
Relation http://hal.archives-ouvertes.fr/docs/00/18/01/71/PDF/GN07.pdf