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The aircraft loading optimization problem is a computationally hard problem with the best known classical algorithm scaling exponentially with the number of objects. We propose a quantum approach based on a multi-angle variant of the QAOA…

Hybrid-quantum classical optimization has emerged as a promising direction for addressing financial decision problems under current quantum hardware constraints. In this work we present a practical end-to-end portfolio optimization pipeline…

In this work, we present the methods necessary to price an important set of derivatives on a quantum device while offering an advantage over existing classical methods. The methods developed here, in conjunction with ~\cite{GumaroS2026},…

Quantum Physics · Physics 2026-05-29 Gumaro Rendon , Stepan Smid , Sarvagya Upadhyay

Quantum algorithms have gained increasing attention for addressing complex combinatorial problems in finance, notably portfolio optimization. This study systematically benchmarks two prominent variational quantum approaches, Variational…

Quantum Physics · Physics 2025-12-05 Nouhaila Innan , Ayesha Saleem , Alberto Marchisio , Muhammad Shafique

A quantum-inspired optimization approach is proposed to study the portfolio optimization aimed at selecting an optimal mix of assets based on the risk-return trade-off to achieve the desired goal in investment. By integrating conventional…

Portfolio Management · Quantitative Finance 2024-11-15 Ying-Chang Lu , Chao-Ming Fu , Lien-Po Yu , Yen-Jui Chang , Ching-Ray Chang

Variational hybrid quantum-classical algorithms are some of the most promising workloads for near-term quantum computers without error correction. The aim of these variational algorithms is to guide the quantum system to a target state that…

Quantum Physics · Physics 2021-03-18 Shavindra P. Premaratne , A. Y. Matsuura

We generalize the Approximate Quantum Compiling algorithm into a new method for CNOT-depth reduction, which is apt to process wide target quantum circuits. Combining this method with state-of-the-art techniques for error mitigation and…

We develop quantum algorithms for pricing Asian and barrier options under the Heston model, a popular stochastic volatility model, and estimate their costs, in terms of T-count, T-depth and number of logical qubits, on instances under…

Quantum Physics · Physics 2024-10-23 Guoming Wang , Angus Kan

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…

Risk Management · Quantitative Finance 2026-01-05 Pengpeng Li , Shi-Dong Liang

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…

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…

Pricing of Securities · Quantitative Finance 2013-07-26 Ovidiu Racorean

Quantum Portfolios of quantum algorithms encoded on qbits have recently been reported. In this paper a discussion of the continuous variables version of quantum portfolios is presented. A risk neutral valuation model for options dependent…

General Finance · Quantitative Finance 2015-03-14 Fredrick Michael

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…

Pricing of Securities · Quantitative Finance 2024-03-27 W. Brent Lindquist , Svetlozar T. Rachev

This article proposes a Variational Quantum Algorithm to solve linear and nonlinear thermofluid dynamic transport equations. The hybrid classical-quantum framework is applied to problems governed by the heat, wave, and Burgers' equation in…

Quantum Physics · Physics 2025-11-06 Sergio Bengoechea , Paul Over , Dieter Jaksch , Thomas Rung

We present an algorithm which efficiently estimates the intrinsic long-term value of a portfolio of assets on a quantum computer. The method relies on quantum amplitude estimation to estimate the mean of a novel implementation of the…

Quantum annealing is a promising paradigm for building practical quantum computers. Compared to other approaches, quantum annealing technology has been scaled up to a larger number of qubits. On the other hand, deep learning has been…

Quantum Physics · Physics 2021-07-07 Michele Sasdelli , Tat-Jun Chin

Pricing of financial derivatives, in particular early exercisable options such as Bermudan options, is an important but heavy numerical task in financial institutions, and its speed-up will provide a large business impact. Recently,…

Quantum Physics · Physics 2021-08-23 Koichi Miyamoto

Current quantum computing devices have different strengths and weaknesses depending on their architectures. This means that flexible approaches to circuit design are necessary. We address this task by introducing a novel space-efficient…

Applications of the quantum algorithm for Monte Carlo simulation to pricing of financial derivatives have been discussed in previous papers. However, up to now, the pricing model discussed in such papers is Black-Scholes model, which is…

Quantum Physics · Physics 2020-07-06 Kazuya Kaneko , Koichi Miyamoto , Naoyuki Takeda , Kazuyoshi Yoshino

Classical Monte Carlo algorithms can theoretically be sped up on a quantum computer by employing amplitude estimation (AE). To realize this, an efficient implementation of state-dependent functions is crucial. We develop a straightforward…

Quantum Physics · Physics 2024-03-26 Mark-Oliver Wolf , Tom Ewen , Ivica Turkalj