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Expectation of Stratonovich iterated integrals of Wiener processes

Probability 2010-08-25 v1

Abstract

The solution of a (stochastic) differential equation (SDE) can be locally approximated by a stochastic expansion, a linear combination of iterated integrals. Quantities of interest, like moments, can then be approximated with the expansion. We present a formula for the case where the drivers of the equation are time and Wiener processes. We also present a Mathematica implementation of the result.

Keywords

Cite

@article{arxiv.1008.4033,
  title  = {Expectation of Stratonovich iterated integrals of Wiener processes},
  author = {Christophe Ladroue},
  journal= {arXiv preprint arXiv:1008.4033},
  year   = {2010}
}

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4 pages