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Related papers: Option Pricing using Quantum Computers

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We combine the one-dimensional Monte Carlo simulation and the semi-analytical one-dimensional heat potential method to design an efficient technique for pricing barrier options on assets with correlated stochastic volatility. Our approach…

Computational Finance · Quantitative Finance 2022-02-17 Alexander Lipton , Artur Sepp

Variational quantum algorithms (VQAs) are hybrid quantum-classical approaches used for tackling a wide range of problems on noisy intermediate-scale quantum (NISQ) devices. Testing these algorithms on relevant hardware is crucial to…

We develop a quantum algorithm to price discretely monitored lookback options in the Black-Scholes framework using imaginary time evolution. By rewriting the pricing PDE as a Schrodinger-type equation, the problem becomes the imaginary time…

Computational Finance · Quantitative Finance 2026-04-02 Florence Paquette , Tania Belabbas , Emmanuel Hamel , Anne MacKay

We establish a classical heuristic algorithm for exactly computing quantum probability amplitudes. Our algorithm is based on mapping output probability amplitudes of quantum circuits to evaluations of the Tutte polynomial of graphic…

Quantum Physics · Physics 2021-09-28 Ryan L. Mann

This paper investigates the application of quantum computing technology to airline gate-scheduling quadratic assignment problems (QAP). We explore the quantum computing hardware architecture and software environment required for porting…

There is a vast literature on numerical valuation of exotic options using Monte Carlo, binomial and trinomial trees, and finite difference methods. When transition density of the underlying asset or its moments are known in closed form, it…

Computational Finance · Quantitative Finance 2015-08-05 Xiaolin Luo , Pavel V. Shevchenko

Quantitative trading is an integral part of financial markets with high calculation speed requirements, while no quantum algorithms have been introduced into this field yet. We propose quantum algorithms for high-frequency statistical…

Quantum Physics · Physics 2022-08-24 Xi-Ning Zhuang , Zhao-Yun Chen , Yu-Chun Wu , Guo-Ping Guo

The accurate implementation of quantum gates is essential for the realisation of quantum algorithms and digital quantum simulations. This accuracy may be increased on noisy hardware through the variational optimisation of gates, however the…

Quantum Physics · Physics 2021-07-14 Sean Greenaway , Frédéric Sauvage , Kiran E. Khosla , Florian Mintert

We show how phase and amplitude estimation algorithms can be parallelized. This can reduce the gate depth of the quantum circuits to that of a single Grover operator with a small overhead. Further, we show that for quantum amplitude…

Quantum Physics · Physics 2022-12-19 M. C. Braun , T. Decker , N. Hegemann , S. F. Kerstan

We propose a sequential minimal optimization method for quantum-classical hybrid algorithms, which converges faster, is robust against statistical error, and is hyperparameter-free. Specifically, the optimization problem of the…

Quantum Physics · Physics 2020-11-04 Ken M. Nakanishi , Keisuke Fujii , Synge Todo

Quantum computing has garnered attention for its potential to solve complex computational problems with considerable speedup. Despite notable advancements in the field, achieving meaningful scalability and noise control in quantum hardware…

Quantum Physics · Physics 2025-05-12 Eduardo Willwock Lussi , Rafael de Santiago , Eduardo Inacio Duzzioni

Quantum algorithms are able to solve particular problems exponentially faster than conventional algorithms, when implemented on a quantum computer. However, all demonstrations to date have required already knowing the answer to construct…

Quantum Physics · Physics 2013-03-22 Xiao-Qi Zhou , Pruet Kalasuwan , Timothy C. Ralph , Jeremy L. O'Brien

Two-qubit logical gates are proposed on the basis of two atoms trapped in a cavity setup. Losses in the interaction by spontaneous transitions are efficiently suppressed by employing adiabatic transitions and the Zeno effect. Dynamical and…

Quantum Physics · Physics 2009-11-07 Jiannis Pachos , Herbert Walther

Variational quantum algorithms are a leading candidate for early applications on noisy intermediate-scale quantum computers. These algorithms depend on a classical optimization outer-loop that minimizes some function of a parameterized…

In some quantum algorithms, arithmetic operations are of utmost importance for resource estimation. In binary quantum systems, some efficient implementation of arithmetic operations like, addition/subtraction, multiplication/division,…

Quantum Physics · Physics 2022-06-01 Amit Saha , Turbasu Chatterjee , Anupam Chattopadhyay , Amlan Chakrabarti

We formulate quantum computing solutions to a large class of dynamic nonlinear asset pricing models using algorithms, in theory exponentially more efficient than classical ones, which leverage the quantum properties of superposition and…

Pricing of Securities · Quantitative Finance 2025-08-26 Eric Ghysels , Jack Morgan

Optimisation plays a central role in a wide range of scientific and industrial applications, and quantum computing has been widely proposed as a means to achieve computational advantages in this domain. To date, research into the design of…

Quantum Physics · Physics 2026-02-03 Stuart Ferguson , Petros Wallden

Quantum computing promises speedup of classical algorithms in the long term. Current hardware is unable to support this goal and programs must be efficiently compiled to use of the devices through reduction of qubits used, gate count and…

Quantum Physics · Physics 2022-11-30 Andrew Litteken , Jonathan M. Baker , Frederic T. Chong

The aircraft loading optimization problem is a computationally hard problem with the best known classical algorithm scaling exponentially with the number of objects. We propose a quantum approach based on a multi-angle variant of the QAOA…

We propose using variational quantum algorithms (VQAs) to simulate established quantum algorithms under realistic noise conditions, aiming to surpass the fidelity of theoretical circuits in noisy environments. Focusing on the Quantum…

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