Related papers: Fundamental theorem for quantum asset pricing
In the given work the first attempt to generalize quantum uncertainty relation on macro objects is made. Business company as one of economical process participants was chosen by the authors for this purpose. The analogies between quantum…
Accurate modeling of the temporal evolution of asset prices is crucial for understanding financial markets. We explore the potential of discrete-time quantum walks to model the evolution of asset prices. Return distributions obtained from a…
This paper is an attempt at understanding the quantum-like dynamics of financial markets in terms of non-differentiable price-time continuum having fractal properties. The main steps of this development are the statistical scaling, the…
Let $M$ be a von Neumann algebra and let $(N_t)_{t\in[0,T]}$ be an increasing family of abelian von Neumann subalgebras encoding a (classical) information flow. Fix a faithful normal state $\varphi_\rho$ and a filtration of normal…
Applications of Quantum Tunneling effect have long gone beyond the traditional physical meaning. Initially created by Gamow to explain {\alpha}-decay of nuclear particles, along the time, quantum tunneling found fertile domain of research…
We consider several observers who monitor different parts of the environment of a single quantum system and use their data to deduce its state. We derive a set of conditional stochastic master equations that describe the evolution of the…
We unify and establish equivalence between the pathwise and the quasi-sure approaches to robust modelling of financial markets in discrete time. In particular, we prove a Fundamental Theorem of Asset Pricing and a Superhedging Theorem,…
The LIBOR Market Model (LMM) is a widely used model for pricing interest rate derivatives. While the Black-Scholes model is well-known for pricing stock derivatives such as stock options, a larger portion of derivatives are based on…
We review the basic idea behind resource theories, where we quantify quantum resources by specifying a restricted class of operations. This divides the state space into various sets, including states which are free (because they can be…
Amplitudes are the major logical object in Quantum Theory. Despite this fact they presents no physical reality and in consequence only observables can be experimetally checked. We discuss the possibility of a theory of Quantum Probabilities…
We develop a robust framework for pricing and hedging of derivative securities in discrete-time financial markets. We consider markets with both dynamically and statically traded assets and make minimal measurability assumptions. We obtain…
This article outlines our point of view regarding the applicability, state-of-the-art, and potential of quantum computing for problems in finance. We provide an introduction to quantum computing as well as a survey on problem classes in…
As quantum computing approaches the threshold where certain tasks demonstrably outpace their classical machines, the need for a precise, clear, consensus-driven definition of quantum advantage becomes essential. Rapid progress in the field…
The general method is proposed for constructing a family of martingale measures for a wide class of evolution of risky assets. The sufficient conditions are formulated for the evolution of risky assets under which the family of equivalent…
Portfolio construction has been a long-standing topic of research in finance. The computational complexity and the time taken both increase rapidly with the number of investments in the portfolio. It becomes difficult, even impossible for…
The manipulation of quantum "resources" such as entanglement, coherence and magic states lies at the heart of quantum science and technology, empowering potential advantages over classical methods. In practice, a particularly important kind…
The quest of this work is to present discussions of some fundamental questions of economics in the era of quantum technology, which require a treatment different from economics studied thus far in the literature. A study of quantum economic…
We discuss a Quantum Non-Demolition Measurement (QNDM) protocol to estimate the derivatives of a cost function with a quantum computer. %This is a key step for the implementation of variational quantum circuits. The cost function, which is…
Quantum computers are expected to surpass the computational capabilities of classical computers during this decade, and achieve disruptive impact on numerous industry sectors, particularly finance. In fact, finance is estimated to be the…
Quantum computers are expected to contribute more efficient and accurate ways of modeling economic processes. Quantum hardware is currently available at a relatively small scale, but effective algorithms are limited by the number of logic…