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The change of numeraire gives very important computational simplification in option pricing. This technique reduces the number of sources of risks that need to be accounted for and so it is useful in pricing complicated derivatives that…

Pricing of Securities · Quantitative Finance 2014-07-22 Hyong-chol O , Yong-hwa Ro , Ning Wan

We present a method that integrates any quantum algorithm capable of finding solutions to integer linear programs into the Branch-and-Price algorithm, which is regularly used to solve large-scale integer linear programs with a specific…

We discuss how quantum computation can be applied to financial problems, providing an overview of current approaches and potential prospects. We review quantum optimization algorithms, and expose how quantum annealers can be used to…

Quantum Physics · Physics 2019-03-04 Roman Orus , Samuel Mugel , Enrique Lizaso

This Ph.D. thesis provides a comprehensive review of the state-of-the-art in the field of Variational Quantum Algorithms and Quantum Machine Learning, including numerous original contributions. The first chapters are devoted to a brief…

Quantum Physics · Physics 2023-06-19 Stefano Mangini

Several quantities important in condensed matter physics, quantum information, and quantum chemistry, as well as quantities required in meta-optimization of machine learning algorithms, can be expressed as gradients of implicitly defined…

Quantum Physics · Physics 2022-11-28 Shahnawaz Ahmed , Nathan Killoran , Juan Felipe Carrasquilla Álvarez

The accurate computation of ground and excited states of many-fermion quantum systems is one of the most consequential, contemporary challenges in the physical and computational sciences whose solution stands to benefit significantly from…

Quantum Physics · Physics 2021-02-24 S. E. Smart , D. A. Mazziotti

Computational methods both open the frontiers of economic analysis and serve as a bottleneck in what can be achieved. We are the first to study whether Quantum Monte Carlo (QMC) algorithm can improve the runtime of economic applications and…

Quantum Physics · Physics 2024-09-24 Vladimir Skavysh , Sofia Priazhkina , Diego Guala , Thomas R. Bromley

The potential impact of quantum machine learning algorithms on industrial applications remains an exciting open question. Conventional methods for encoding classical data into quantum computers are not only too costly for a potential…

Quantum Physics · Physics 2024-03-06 Kevin Shen , Bernhard Jobst , Elvira Shishenina , Frank Pollmann

This project attempts to address the problem of asset pricing in a financial market, where the interest rates and volatilities exhibit regime switching. This is an extension of the Black-Scholes model. Studies of Markov-modulated regime…

Mathematical Finance · Quantitative Finance 2016-09-19 Tanmay S. Patankar

This paper summarizes a research program that has been underway for a decade. The objective is to find a fast and accurate scheme for solving quantum problems which does not involve a Monte Carlo algorithm. We use an alternative strategy…

High Energy Physics - Phenomenology · Physics 2007-05-23 Carl M. Bender , Lawrence R. Mead , Kimball A. Milton

Quantum computing promises the ability to compute properties of quantum systems exponentially faster than classical computers. Quantum advantage is achieved when a practical problem is solved more efficiently on a quantum computer than on a…

Quantum Physics · Physics 2025-12-03 William A. Simon , Peter J. Love

In this paper we reformulate the problem of pricing options in a quantum setting. Our proposed algorithm involves preparing an initial state, representing the option price, and then evolving it using existing imaginary time simulation…

Quantum Physics · Physics 2021-01-13 Santosh Kumar Radha

The computational cost of exact methods for quantum simulation using classical computers grows exponentially with system size. As a consequence, these techniques can only be applied to small systems. By contrast, we demonstrate that quantum…

Quantum Physics · Physics 2008-12-17 Ivan Kassal , Stephen P. Jordan , Peter J. Love , Masoud Mohseni , Alán Aspuru-Guzik

This paper explores the application of Machine Learning techniques for pricing high-dimensional options within the framework of the Uncertain Volatility Model (UVM). The UVM is a robust framework that accounts for the inherent…

Computational Finance · Quantitative Finance 2025-06-06 Ludovic Goudenege , Andrea Molent , Antonino Zanette

Most problems in uncertainty quantification, despite its ubiquitousness in scientific computing, applied mathematics and data science, remain formidable on a classical computer. For uncertainties that arise in partial differential equations…

Quantum Physics · Physics 2022-09-29 Francois Golse , Shi Jin , Nana Liu

In this article we introduce an algorithm for mitigating the adverse effects of noise on gradient descent in variational quantum algorithms. This is accomplished by computing a {\emph{regularized}} local classical approximation to the…

Quantum Physics · Physics 2024-03-07 Lars Simon , Holger Eble , Hagen-Henrik Kowalski , Manuel Radons

One of the most discussed problems in the financial world is stock option pricing. The Black-Scholes Equation is a Parabolic Partial Differential Equation which provides an option pricing model. The present work proposes an approach based…

Machine Learning · Computer Science 2024-05-12 Daniel de Souza Santos , Tiago Alessandro Espinola Ferreira

Variational hybrid quantum-classical optimization represents one of the most promising avenue to show the advantage of nowadays noisy intermediate-scale quantum computers in solving hard problems, such as finding the minimum-energy state of…

Quantum Physics · Physics 2020-11-18 Laura Gentini , Alessandro Cuccoli , Stefano Pirandola , Paola Verrucchi , Leonardo Banchi

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

Markov decision processes (MDPs) with multi-dimensional weights are useful to analyze systems with multiple objectives that may be conflicting and require the analysis of trade-offs. We study the complexity of percentile queries in such…

Logic in Computer Science · Computer Science 2016-12-08 Mickael Randour , Jean-François Raskin , Ocan Sankur
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