Related papers: Finite quantum mechanical model for the stock mark…
The complex Hilbert space of standard quantum mechanics may be treated as a real Hilbert space. The pure states of the complex theory become mixed states in the real formulation. It is then possible to generalize standard quantum mechanics,…
This paper tends to define the quantitative relationship between the stock price and time as a time function. Based on the empirical evidence that the log-return of a stock is the series of white noise, a mathematical model of the integral…
We investigate modifications of quantum mechanics (QM) that replace the unitary group in a finite dimensional Hilbert space with a finite group and determine the minimal sequence of subgroups necessary to approximate QM arbitrarily closely…
Quantum Finance represents the synthesis of the techniques of quantum theory (quantum mechanics and quantum field theory) to theoretical and applied finance. After a brief overview of the connection between these fields, we illustrate some…
This manuscript deals with a model of the evolution of an event space represented by the fundamental solution of a N-dimensional generalized Schrodinger equation for free matter. Specifically this solution can be applied to describe the 3D…
We study the problem of computing the probability for the time-of-arrival of a quantum particle at a given spatial position. We consider a solution to this problem based on the spectral decomposition of the particle's (Heisenberg) state…
This paper proposes a novel model of financial prices where: (i) prices are discrete; (ii) prices change in continuous time; (iii) a high proportion of price changes are reversed in a fraction of a second. Our model is analytically…
Consider a trade market with one seller and multiple buyers. The seller aims to sell an indivisible item and maximize their revenue. This paper focuses on a simple and popular mechanism--the fixed-price mechanism. Unlike the standard…
The quantum speed limit sets the minimum time required to transfer a quantum system completely into a given target state. At shorter times the higher operation speed has to be paid with a loss of fidelity. Here we quantify the trade-off…
We introduce a logic modelling some aspects of the behaviour of the measurement process, in such a way that no direct mention of quantum states is made, thus avoiding the problems associated to this rather evasive notion. We then study some…
The purpose of this work is to test the application of the finite element method to quantum mechanical problems, in particular for solving the Schroedinger equation. We begin with an overview of quantum mechanics, and standard numerical…
Exchangeability is a fundamental concept in probability theory and statistics. It allows to model situations where the order of observations does not matter. The classical de Finetti's theorem provides a representation of infinitely…
We present evidence that the best model for empirical volume-price distributions is not always the same and it strongly depends in (i) the region of the volume-price spectrum that one wants to model and (ii) the period in time that is being…
Quantum computers are not yet up to the task of providing computational advantages for practical stochastic diffusion models commonly used by financial analysts. In this paper we introduce a class of stochastic processes that are both…
One approach to the analysis of stochastic fluctuations in market prices is to model characteristics of investor behaviour and the complex interactions between market participants, with the aim of extracting consequences in the aggregate.…
The classical Hilbert space formulation of the axioms of Quantum Mechanics appears to leave open the question whether the Hermitian operators which are associated with the observables of a finite non-relativistic quantum system are uniquely…
In this article we model a financial derivative price as an observable on the market state function. We apply geometric techniques to integrating the Heisenberg Equation of Motion. We illustrate how the non-commutative nature of the model…
The question of controllability is investigated for a quantum control system in which the Hamiltonian operator components carry explicit time dependence which is not under the control of an external agent. We consider the general situation…
We propose a new systematic fibre bundle formulation of nonrelativistic quantum mechanics. The new form of the theory is equivalent to the usual one but it is in harmony with the modern trends in theoretical physics and potentially admits…
We introduce a flexible and tractable infinite-dimensional stochastic volatility model. More specifically, we consider a Hilbert space valued Ornstein-Uhlenbeck-type process, whose instantaneous covariance is given by a pure-jump stochastic…