Finite-variation terms do not change quadratic variation

ID: finite-variation-terms-do-not-change-quadratic-variation

On a compact interval, squared increments of a continuous finite variation process are bounded by its modulus of continuity at the mesh size times its total variation, and therefore vanish. The Cauchy-Schwarz inequality bounds the mixed increment sum by the square root of the product of the two squared-increment sums. The local-martingale sum is bounded in probability, so the mixed term also vanishes.

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