English
Related papers

Related papers: Option Pricing using Quantum Computers

200 papers

The method is introduced for fast data processing by reducing the probability amplitudes of undesirable elements. The algorithm has a mathematical description and circuit implementation on a quantum processor. The idea is to make a quick…

Quantum Physics · Physics 2025-04-24 Karina Zakharova , Artem Chernikov , Sergey Sysoev

Amplitude estimation is a fundamental quantum algorithmic primitive that enables quantum computers to achieve quadratic speedups for a large class of statistical estimation problems, including Monte Carlo methods. The main drawback from the…

This study presents a quantum circuit for estimating the pi value using arithmetic circuits and by quantum amplitude estimation. We review two types of quantum multipliers and propose quantum squaring circuits based on the multiplier as…

Quantum Physics · Physics 2020-10-22 Takuma Noto

The Quantum Approximate Optimization Algorithm (QAOA) adopts a hybrid quantum-classical approach to find approximate solutions to variational optimization problems. In fact, it relies on a classical subroutine to optimize the parameters of…

Quantum Physics · Physics 2023-07-31 Simone Tibaldi , Davide Vodola , Edoardo Tignone , Elisa Ercolessi

We propose an approach for quantum amplitude estimation (QAE) designed to enhance computational efficiency while minimizing the reliance on quantum resources. Our method leverages quantum computers to generate a sequence of signals, from…

Quantum Physics · Physics 2025-08-25 Yongdan Yang , Ruyu Yang

Variational quantum algorithms dominate contemporary gate-based quantum enhanced optimisation, eigenvalue estimation and machine learning. Here we establish the quantum computational universality of variational quantum computation by…

Quantum Physics · Physics 2021-05-25 Jacob Biamonte

A critical problem in the financial world deals with the management of risk, from regulatory risk to portfolio risk. Many such problems involve the analysis of securities modelled by complex dynamics that cannot be captured analytically,…

Quantum Physics · Physics 2025-04-03 Jeong Yu Han , Bin Cheng , Dinh-Long Vu , Patrick Rebentrost

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…

Quantum Physics · Physics 2023-11-03 Eric Ghysels , Jack Morgan , Hamed Mohammadbagherpoor

In this paper, we introduce a quantum-enhanced algorithm for simulation-based optimization. Simulation-based optimization seeks to optimize an objective function that is computationally expensive to evaluate exactly, and thus, is…

Quantum Physics · Physics 2021-03-08 Julien Gacon , Christa Zoufal , Stefan Woerner

The quantum algorithms for Monte Carlo integration (QMCI), which are based on quantum amplitude estimation (QAE), speed up expected value calculation compared with classical counterparts, and have been widely investigated along with their…

Quantum Physics · Physics 2021-11-23 Koichi Miyamoto

In the following paper we provide a review and development of sequential Monte Carlo (SMC) methods for option pricing. SMC are a class of Monte Carlo-based algorithms, that are designed to approximate expectations w.r.t a sequence of…

Computation · Statistics 2010-05-27 Ajay Jasra , Pierre Del Moral

We develop and implement automated methods for optimizing quantum circuits of the size and type expected in quantum computations that outperform classical computers. We show how to handle continuous gate parameters and report a collection…

Quantum Physics · Physics 2018-06-04 Yunseong Nam , Neil J. Ross , Yuan Su , Andrew M. Childs , Dmitri Maslov

Quantum Approximate Optimization Algorithms (QAOA) have demonstrated a strong potential in addressing graph-based optimization problems. However, the execution of large-scale quantum circuits remains constrained by the limitations of…

Quantum Physics · Physics 2025-06-11 Vicente P. Soloviev , Antonio Márquez Romero , Josh Kirsopp , Michal Krompiec

Quantum advantage requires overcoming noise-induced degradation of quantum systems. Conventional methods for reducing noise such as error mitigation face scalability issues in deep circuits. Specifically, noise hampers the extraction of…

Quantum Physics · Physics 2023-12-05 Yonglong Ding , Ruyu Yang

Monte Carlo sampling is a powerful toolbox of algorithmic techniques widely used for a number of applications wherein some noisy quantity, or summary statistic thereof, is sought to be estimated. In this paper, we survey the literature for…

The advent of quantum computing processors with possibility to scale beyond experimental capacities magnifies the importance of studying their applications. Combinatorial optimization problems can be one of the promising applications of…

Quantum Physics · Physics 2017-08-18 Ehsan Zahedinejad , Arman Zaribafiyan

Standard quantum amplitude estimation algorithms provide quadratic speedup to Monte-Carlo simulations but require a circuit depth that scales as inverse of the estimation error. In view of the shallow depth in near-term devices, the…

Quantum Physics · Physics 2024-10-03 Dinh-Long Vu , Bin Cheng , Patrick Rebentrost

Quantum Amplitude Estimation (QAE) can achieve a quadratic speed-up for applications classically solved by Monte Carlo simulation. A key requirement to realize this advantage is efficient state preparation. If state preparation is too…

Quantum Physics · Physics 2021-03-17 Almudena Carrera Vazquez , Stefan Woerner

We introduce two kinds of quantum algorithms to explore microcanonical and canonical properties of many-body systems. The first one is a hybrid quantum algorithm that, given an efficiently preparable state, computes expectation values in a…

Quantum Physics · Physics 2021-05-19 Sirui Lu , Mari Carmen Bañuls , J. Ignacio Cirac

Quantization algorithms have been successfully adopted to option pricing in finance thanks to the high convergence rate of the numerical approximation. In particular, very recently, recursive marginal quantization has been proven to be a…

Pricing of Securities · Quantitative Finance 2019-12-04 Giorgia Callegaro , Lucio Fiorin , Andrea Pallavicini