Related papers: Fundamental theorem for quantum asset pricing
Within context of quantum logic, it is possible to assign dispersion-free probabilities to experimental propositions pertaining to qubits. This makes qubits distinct from the rest of quantum systems since the latter do not admit…
Due to the beyond-classical capability of quantum computing, quantum machine learning is applied independently or embedded in classical models for decision making, especially in the field of finance. Fairness and other ethical issues are…
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…
The influence of additional information on the decision making of agents, who are interacting members of a society, is analyzed within the mathematical framework based on the use of quantum probabilities. The introduction of social…
A new representation of Game Theory is developed in this paper. State of players is represented by a density matrix, and payoff function is a set of hermitian operators, which when applied onto the density matrix give the payoff of players.…
It is known in the context of decentralised control that there exist control strategies consistent with the requirements of a given information structure, yet physically unimplementable through any amount of passive common randomness. This…
In the study of quantum limits to parameter estimation, the high dimensionality of the density operator and that of the unknown parameters have long been two of the most difficult challenges. Here we propose a theory of quantum…
We propose a hybrid quantum-classical algorithm, originated from quantum chemistry, to price European and Asian options in the Black-Scholes model. Our approach is based on the equivalence between the pricing partial differential equation…
We prove a version of First Fundamental Theorem of Asset Pricing under transaction costs for discrete-time markets with dividend-paying securities. Specifically, we show that the no-arbitrage condition under the efficient friction…
This paper presents the contemporary Fundamental Theorem of Asset Pricing as being equivalent to approaches to pricing that emerged before 1700 in the context of Virtue Ethics. This is done by considering the history of science and…
We develop two alternate approaches to arbitrage-free, market-complete, option pricing. The first approach requires no riskless asset. We develop the general framework for this approach and illustrate it with two specific examples. The…
This paper does not suppose a priori that the evolution of the price of a financial asset is a semimartingale. Since possible strategies of investors are self-financing, previous prices are forced to be finite quadratic variation processes.…
Quantum money represents an innovative approach to currency by encoding economic value within the quantum states of physical systems, utilizing the principles of quantum mechanics to enhance security, integrity, and transferability. This…
One of the central problems in the study of quantum resource theories is to provide a given resource with an operational meaning, characterizing physical tasks in which the resource can give an explicit advantage over all resourceless…
We propose a new idea for public key quantum money. In the abstract sense, our bills are encoded as a joint eigenstate of a fixed system of commuting unitary operators. We perform some basic analysis of this black box system and show that…
A central problem in quantum resource theory is to give operational meaning to quantum resources that can provide clear advantages in certain physical tasks compared to the convex set of resource-free states. We propose to extend this basic…
We provide a critical analysis of the proof of the fundamental theorem of asset pricing given in the paper "Arbitrage and approximate arbitrage: the fundamental theorem of asset pricing" by B. Wong and C.C. Heyde (Stochastics, 2010) in the…
One of the potential applications of a quantum computer is solving quantum chemical systems. It is known that one of the fastest ways to obtain somewhat accurate solutions classically is to use approximations of density functional theory.…
In this study, we consider the asset pricing under model uncertainty with discrete time and states structure. For the single-period securities model, we give a novel definition of arbitrage under a family of probability, and explore of its…
This note develops an arbitrage theory for a discrete-time market model without the assumption of the existence of a num\'eraire asset. Fundamental theorems of asset pricing are stated and proven in this context. The distinction between the…