Gauge Physics of Finance: simple introduction
Statistical Mechanics
2008-12-10 v1 adap-org
Adaptation and Self-Organizing Systems
Physics and Society
Pricing of Securities
Quantum Physics
Abstract
In this paper we state the fundamental principles of the gauge approach to financial economics and demonstrate the ways of its application. In particular, modelling of realistic price processes is considered for an example of S&P500 market index. Derivative pricing and portfolio theory are also briefly discussed.
Keywords
Cite
@article{arxiv.cond-mat/9811197,
title = {Gauge Physics of Finance: simple introduction},
author = {Kirill N Ilinski},
journal= {arXiv preprint arXiv:cond-mat/9811197},
year = {2008}
}
Comments
16 pages, 2 figures, written for MoneyWeb