Strong approximation of stochastic processes at random times and application to their exact simulation

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Abstract

We study the convergence rates of strong approximations of stochastic processes (possibly non semi-martingales) at random times (possibly non stopping times). Examples include Brownian local times at random points, Fractional Brownian motions or diffusion processes at Brownian time. These strong approximation results allow to design an exact simulation scheme.

Original languageEnglish
Pages (from-to)883-895
Number of pages13
JournalStochastics
Volume89
Issue number6-7
DOIs
Publication statusPublished - 3 Oct 2017

Keywords

  • Euler schemes
  • Fractional Brownian motion
  • Strong approximation
  • exact simulation
  • iterated Brownian motion
  • local time

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