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Related papers: Option Pricing using Quantum Computers

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In this study, we give an extension of Montanaro's arXiv/archive:1504.06987 quantum Monte Carlo method, tailored for computing expected values of random variables that exhibit infinite variance. This addresses a challenge in analyzing…

Quantum Physics · Physics 2024-03-08 Jose Blanchet , Mario Szegedy , Guanyang Wang

Since simulating quantum computers requires exponentially more classical resources, efficient algorithms are extremely helpful. We analyze algorithms that create single qubit and specific controlled qubit matrix representations of gates.…

Quantum Physics · Physics 2007-05-23 Eric Hsu

The computational capabilities of near-term quantum computers are limited by the noisy execution of gate operations and a limited number of physical qubits. Hybrid variational algorithms are well-suited to near-term quantum devices because…

Quantum Physics · Physics 2024-10-09 Teague Tomesh , Nicholas Allen , Daniel Dilley , Zain Saleem

We introduce a novel hybrid quantum-classical variational optimization method for unconstrained binary combinatorial optimization problems on gate-model quantum computers, integrating a custom variational ansatz, staged feedback-based dual…

Here we show how universal quantum computers based on the quantum circuit model can handle mathematical analysis calculations for functions with continuous domains, without any digitalization, and with remarkably few qubits. The basic…

Quantum Physics · Physics 2022-10-10 Pablo Bermejo , Roman Orus

We propose a variational approach for preparing entangled quantum states on quantum computers. The methodology involves training a unitary operation to match with a target unitary using the Fubini-Study distance as a cost function. We…

Quantum Physics · Physics 2023-07-03 Vu Tuan Hai , Nguyen Tan Viet , Le Bin Ho

Quantum optimization algorithms (QOAs) have the potential to fundamentally transform the application of optimization methods in decision making. For certain classes of optimization problems, it is widely believed that QOA enables…

Quantum Physics · Physics 2024-01-15 Florian Klug

There is no unique way to encode a quantum algorithm into a quantum circuit. With limited qubit counts, connectivities, and coherence times, circuit optimization is essential to make the best use of near-term quantum devices. We introduce…

We present a parallel algorithm that computes the ask and bid prices of an American option when proportional transaction costs apply to the trading of the underlying asset. The algorithm computes the prices on recombining binomial trees,…

Distributed, Parallel, and Cluster Computing · Computer Science 2011-10-12 Nan Zhang , Alet Roux , Tomasz Zastawniak

Variational hybrid quantum-classical algorithms are some of the most promising workloads for near-term quantum computers without error correction. The aim of these variational algorithms is to guide the quantum system to a target state that…

Quantum Physics · Physics 2021-03-18 Shavindra P. Premaratne , A. Y. Matsuura

Quantum computers provide a fundamentally new computing paradigm that promises to revolutionize our ability to solve broad classes of problems. Surprisingly, the basic mathematical structures of gate-based quantum computing, such as unitary…

Quantum Physics · Physics 2019-08-20 Brian R. La Cour , S. Andrew Lanham , Corey I. Ostrove

Quantum computers show potential for achieving computational advantage over classical computers, with many candidate applications in combinatorial optimisation. We present an application level benchmarking framework for near-term quantum…

Compilation and optimization of quantum circuits are critical components in the execution of algorithms on quantum computers. These components must successfully balance two competing priorities: minimizing the number of expensive resources,…

Quantum machine learning has the potential to provide powerful algorithms for artificial intelligence. The pursuit of quantum advantage in quantum machine learning is an active area of research. For current noisy, intermediate-scale quantum…

Quantum Physics · Physics 2023-05-11 Rui Yang , Samuel Bosch , Bobak Kiani , Seth Lloyd , Adrian Lupascu

In machine learning, fewer features reduce model complexity. Carefully assessing the influence of each input feature on the model quality is therefore a crucial preprocessing step. We propose a novel feature selection algorithm based on a…

Quantum Physics · Physics 2023-02-22 Sascha Mücke , Raoul Heese , Sabine Müller , Moritz Wolter , Nico Piatkowski

We present an initialisation method for variational quantum algorithms applicable to intermediate scale quantum computers. The method uses simulated annealing of the efficiently simulable Clifford parameter points as a pre-optimisation to…

Quantum Physics · Physics 2022-07-05 M. H. Cheng , K. E. Khosla , C. N. Self , M. Lin , B. X. Li , A. C. Medina , M. S. Kim

Quantum computing has the potential to solve many complex algorithms in the domains of optimization, arithmetics, structural search, financial risk analysis, machine learning, image processing, and others. Quantum circuits built to…

Quantum Physics · Physics 2024-07-26 Vladimir V. Arsoski

Based on the analog between the stochastic dynamics and quantum harmonic oscillator, we propose a market force driving model to generalize the Black-Scholes model in finance market. We give new schemes of option pricing, in which we can…

Risk Management · Quantitative Finance 2026-01-05 Pengpeng Li , Shi-Dong Liang

Despite extensive research efforts, few quantum algorithms for classical optimization demonstrate realizable quantum advantage. The utility of many quantum algorithms is limited by high requisite circuit depth and nonconvex optimization…

Quantum Physics · Physics 2022-01-27 Taylor L. Patti , Jean Kossaifi , Anima Anandkumar , Susanne F. Yelin

Quantum algorithms have gained increasing attention for addressing complex combinatorial problems in finance, notably portfolio optimization. This study systematically benchmarks two prominent variational quantum approaches, Variational…

Quantum Physics · Physics 2025-12-05 Nouhaila Innan , Ayesha Saleem , Alberto Marchisio , Muhammad Shafique