English

On the weak convergence rate in the discretization of rough volatility models

Computational Finance 2022-03-08 v1

Abstract

We study the weak convergence rate in the discretization of rough volatility models. After showing a lower bound 2H2H under a general model, where HH is the Hurst index of the volatility process, we give a sharper bound H+1/2H + 1/2 under a linear model.

Keywords

Cite

@article{arxiv.2203.02943,
  title  = {On the weak convergence rate in the discretization of rough volatility models},
  author = {Christian Bayer and Masaaki Fukasawa and Shonosuke Nakahara},
  journal= {arXiv preprint arXiv:2203.02943},
  year   = {2022}
}