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This paper presents a multinomial method for option pricing when the underlying asset follows an exponential Variance Gamma process. The continuous time Variance Gamma process is approximated by a discrete time Markov chain with the same…

Pricing of Securities · Quantitative Finance 2021-06-18 Nicola Cantarutti , João Guerra

VQE is currently one of the most widely used algorithms for optimizing problems using quantum computers. A necessary step in this algorithm is calculating the expectation value given a state, which is calculated by decomposing the…

Quantum Physics · Physics 2021-06-17 Guillermo Alonso-Linaje , Parfait Atchade-Adelomou

Quantum walks can reconstruct quantum algorithms for quantum computation, where the precise controls of quantum state transfers between arbitrary distant sites are required. Here, we investigate quantum walks using a periodically…

Quantum Physics · Physics 2020-04-06 Haruna Katayama , Noriyuki Hatakenaka , Toshiyuki Fujii

Currency arbitrage leverages price discrepancies in currency exchange rates across different currency pairs to gain risk-free profits. It involves multiple trading, where short-lived price discrepancies require real-time, high-speed…

Quantum Physics · Physics 2025-11-03 Suman Kumar Roy , Rahul Rana , M Girish Chandra , Nishant Kumar , Manoj Nambiar

We develop a new algorithm based on the time-dependent variational principle applied to matrix product states to efficiently simulate the real- and imaginary time dynamics for infinite one-dimensional quantum lattice systems. This…

Strongly Correlated Electrons · Physics 2012-03-13 Jutho Haegeman , J. Ignacio Cirac , Tobias J. Osborne , Iztok Pizorn , Henri Verschelde , Frank Verstraete

Combinatorial optimization is a promising application for near-term quantum computers, however, identifying performant algorithms suited to noisy quantum hardware remains as an important goal to potentially realizing quantum computational…

Quantum Physics · Physics 2025-04-01 Titus D. Morris , Ananth Kaushik , Martin Roetteler , Phillip C. Lotshaw

We propose a hybrid quantum-classical algorithm for solving QUBO problems using an Imaginary Time Evolution-Mimicking Circuit (ITEMC). The circuit parameters are optimized to closely mimic imaginary time evolution, using only single- and…

Quantum Physics · Physics 2025-06-19 Yahui Chai , Alice Di Tucci

Developing scalable quantum algorithms to study finite-temperature physics of quantum many-body systems has attracted considerable interest due to recent advancements in quantum hardware. However, such algorithms in their present form…

A quantum algorithm that solves the time-dependent Dirac equation on a digital quantum computer is developed and analyzed. The time evolution is performed by an operator splitting decomposition technique that allows for a mapping of the…

Quantum Physics · Physics 2017-05-03 F. Fillion-Gourdeau , S. MacLean , R. Laflamme

Simulating quantum imaginary-time evolution (QITE) is a major promise of quantum computation. However, the known algorithms are either probabilistic (repeat until success) with impractically small success probabilities or coherent (quantum…

Quantum Physics · Physics 2023-11-02 Thais de Lima Silva , Márcio M. Taddei , Stefano Carrazza , Leandro Aolita

Simulating time evolution of generic quantum many-body systems using classical numerical approaches has an exponentially growing cost either with evolution time or with the system size. In this work, we present a polynomially scaling hybrid…

Quantum Physics · Physics 2023-09-18 Nikita Astrakhantsev , Sheng-Hsuan Lin , Frank Pollmann , Adam Smith

In this paper we study recent developments in the approximation of the spread option pricing. As the Kirk\'s Approximation is extremely flawed in the cases when the correlation is very high, we explore a recent development that allows…

Pricing of Securities · Quantitative Finance 2018-12-13 Suren Harutyunyan , AdriÀ Masip BorrÀs

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

Variational quantum time evolution allows us to simulate the time dynamics of quantum systems with near-term compatible quantum circuits. Due to the variational nature of this method the accuracy of the simulation is a priori unknown. We…

Quantum Physics · Physics 2023-10-25 Christa Zoufal , David Sutter , Stefan Woerner

An efficient computational algorithm to price financial derivatives is presented. It is based on a path integral formulation of the pricing problem. It is shown how the path integral approach can be worked out in order to obtain fast and…

Statistical Mechanics · Physics 2009-11-07 G. Montagna , O. Nicrosini , N. Moreni

In this paper, we focus on option pricing models based on space-time fractional diffusion. We briefly revise recent results which show that the option price can be represented in the terms of rapidly converging double-series and apply these…

Mathematical Finance · Quantitative Finance 2018-04-09 Jean-Philippe Aguilar , Jan Korbel

Variational quantum algorithms (VQAs) that estimate values of widely used physical quantities such as the rank, quantum entropies, the Bures fidelity and the quantum Fisher information of mixed quantum states are developed. In addition,…

Quantum Physics · Physics 2021-09-17 Kok Chuan Tan , Tyler Volkoff

In this paper I develop a new computational method for pricing path dependent options. Using the path integral representation of the option price, I show that in general it is possible to perform analytically a partial averaging over the…

Statistical Mechanics · Physics 2016-08-31 Andrew Matacz

A novel class of hybrid quantum-classical algorithms based on the variational approach have recently emerged from separate proposals addressing, for example, quantum chemistry and combinatorial problems. These algorithms provide an…

Quantum Physics · Physics 2017-01-09 Gian Giacomo Guerreschi , Mikhail Smelyanskiy

We show that the time evolution of the wave function of a quantum mechanical many particle system can be implemented very efficiently on a quantum computer. The computational cost of such a simulation is comparable to the cost of a…

Quantum Physics · Physics 2009-10-30 Christof Zalka
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