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Related papers: Real Option Pricing using Quantum Computers

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One of the crucial generic techniques for quantum computation is amplitude encoding. Although several approaches have been proposed, each of them often requires exponential classical-computational cost or an oracle whose explicit…

Quantum Physics · Physics 2024-12-06 Taichi Kosugi , Shunsuke Daimon , Hirofumi Nishi , Shinji Tsuneyuki , Yu-ichiro Matsushita

Quantum computing holds immense potential for transforming financial analysis and decision-making. Realising this potential necessitates the efficient encoding and processing of financial data on quantum computers. In this study, we propose…

Quantum Physics · Physics 2025-11-21 Floyd M. Creevey , Lloyd C. L. Hollenberg

The Variational Monte Carlo method has recently seen important advances through the use of neural network quantum states. While more and more sophisticated ans\"atze have been designed to tackle a wide variety of quantum many-body problems,…

Nuclear Theory · Physics 2025-07-09 M. Drissi , J. W. T. Keeble , J. Rozalén Sarmiento , A. Rios

In one-way quantum computation (1WQC) model, universal quantum computations are performed using measurements to designated qubits in a highly entangled state. The choices of bases for these measurements as well as the structure of the…

Emerging Technologies · Computer Science 2016-04-20 Eesa Nikahd , Mahboobeh Houshmand , Morteza Saheb Zamani , Mehdi Sedighi

Quantum annealing (QA) has been proposed as a quantum enhanced optimization heuristic exploiting tunneling. Here, we demonstrate how finite range tunneling can provide considerable computational advantage. For a crafted problem designed to…

Quantum computing is poised to transform the financial industry, yet its advantages over traditional methods have not been evidenced. As this technology rapidly evolves, benchmarking is essential to fairly evaluate and compare different…

Optimization and Control · Mathematics 2025-02-11 Ying Chen , Thorsten Koch , Hanqiu Peng , Hongrui Zhang

Quantum-enhanced (i.e., higher performance by quantum effects than any classical methods) mean value estimation of observables is a fundamental task in various quantum technologies; in particular, it is an essential subroutine in quantum…

Quantum Physics · Physics 2024-09-11 Kaito Wada , Kazuma Fukuchi , Naoki Yamamoto

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…

Computational Finance · Quantitative Finance 2021-02-08 Filipe Fontanela , Antoine Jacquier , Mugad Oumgari

Quantum annealers can solve QUBO problems efficiently but struggle with continuous optimization tasks like regression due to their discrete nature. We introduce Quadratic Continuous Quantum Optimization (QCQO), an anytime algorithm that…

Quantum Physics · Physics 2026-01-01 Sascha Mücke , Thore Gerlach , Nico Piatkowski

Efficient methods for loading given classical data into quantum circuits are essential for various quantum algorithms. In this paper, we propose an algorithm called Approximate Amplitude Encoding that can effectively load all the components…

The Variational Quantum Eigensolver (VQE) is a Variational Quantum Algorithm (VQA) to determine the ground state of quantum-mechanical systems. As a VQA, it makes use of a classical computer to optimize parameter values for its quantum…

Quantum Physics · Physics 2025-11-13 Felix Truger , Johanna Barzen , Frank Leymann , Julian Obst

Quantum error correction (QEC) is a way to protect quantum information against noise. It consists of encoding input information into entangled quantum states known as the code space. Furthermore, to classify if the encoded information is…

Quantum Physics · Physics 2024-02-15 Pejman Jouzdani , H. Arslan Hashim , Eduardo R. Mucciolo

Monte Carlo methods use random sampling to estimate numerical quantities which are hard to compute deterministically. One important example is the use in statistical physics of rapidly mixing Markov chains to approximately compute partition…

Quantum Physics · Physics 2017-07-12 Ashley Montanaro

In this work, we present a quantum algorithm designed to solve the differential equation used in the pricing of Asian options, in the framework of the Black-Scholes model. Our approach modifies an existing quantum pre-conditioning method…

Quantum Physics · Physics 2025-05-09 Gumaro Rendon , Rutuja Kshirsagar , Quoc Hoan Tran

The encoding of classical to quantum data mapping through trigonometric functions within arithmetic-based quantum computation algorithms leads to the exploitation of multivariate distributions. The studied variational quantum gate learning…

Quantum Physics · Physics 2025-11-12 Ziqing Guo , Jan Balewski , Wenshuo Hu , Alex Khan , Ziwen Pan

Deploying deep learning models in safety-critical applications remains a very challenging task, mandating the provision of assurances for the dependable operation of these models. Uncertainty quantification (UQ) methods estimate the model's…

Machine Learning · Computer Science 2024-01-23 Daniel Bethell , Simos Gerasimou , Radu Calinescu

In this article we present a new approach to the numerical valuation of derivative securities. The method is based on our previous work where we formulated the theory of pricing in terms of tradables. The basic idea is to fit a finite…

Statistical Mechanics · Physics 2025-12-30 Jiri Hoogland , Dimitri Neumann

We present a full implementation and simulation of a novel quantum reinforcement learning method. Our work is a detailed and formal proof of concept for how quantum algorithms can be used to solve reinforcement learning problems and shows…

Quantum Physics · Physics 2023-11-10 Simon Wiedemann , Daniel Hein , Steffen Udluft , Christian Mendl

Local volatility models usually capture the surface of implied volatilities more accurately than other approaches, such as stochastic volatility models. We present the results of application of Monte Carlo (MC) and Quasi Monte Carlo (QMC)…

Computational Finance · Quantitative Finance 2021-06-17 Julien Hok , Sergei Kucherenko

Quantum Bayesian Computation (QBC) is an emerging field that levers the computational gains available from quantum computers to provide an exponential speed-up in Bayesian computation. Our paper adds to the literature in two ways. First, we…

Machine Learning · Statistics 2023-03-07 Nick Polson , Vadim Sokolov , Jianeng Xu