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Milstein's type schemes for fractional SDEs

Mihai Gradinaru, Ivan Nourdin

math.PRarXiv:math/0702317

Abstract

Weighted power variations of fractional Brownian motion B are used to compute the exact rate of convergence of some approximating schemes associated to one-dimensional stochastic differential equations (SDEs) driven by B. The limit of the error between the exact solution and the considered scheme is computed explicitly.

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