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Financial derivative pricing is a significant challenge in finance, involving the valuation of instruments like options based on underlying assets. While some cases have simple solutions, many require complex classical computational methods…

Computational Finance · Quantitative Finance 2025-05-15 Robert Scriba , Yuying Li , Jingbo B Wang

The recent emergence of novel computational devices, such as quantum computers, coherent Ising machines, and digital annealers presents new opportunities for hardware-accelerated hybrid optimization algorithms. Unfortunately, demonstrations…

Optimization and Control · Mathematics 2020-10-21 Yuchen Pang , Carleton Coffrin , Andrey Y. Lokhov , Marc Vuffray

A critical problem in the financial world deals with the management of risk, from regulatory risk to portfolio risk. Many such problems involve the analysis of securities modelled by complex dynamics that cannot be captured analytically,…

Quantum Physics · Physics 2025-04-03 Jeong Yu Han , Bin Cheng , Dinh-Long Vu , Patrick Rebentrost

Quantum computers show potential for achieving computational advantage over classical computers, with many candidate applications in combinatorial optimisation. We present an application level benchmarking framework for near-term quantum…

Combinatorial optimization is anticipated to be one of the primary use cases for quantum computation in the coming years. The Quantum Approximate Optimization Algorithm (QAOA) and Quantum Annealing (QA) can potentially demonstrate…

We study quantum computing algorithms for solving certain constrained resource allocation problems we coin as Mission Covering Optimization (MCO). We compare formulations of constrained optimization problems using Quantum Annealing…

Quantum Physics · Physics 2022-05-05 Massimiliano Cutugno , Annarita Giani , Paul M. Alsing , Laura Wessing , Austars Schnore

While quantum computing proposes promising solutions to computational problems not accessible with classical approaches, due to current hardware constraints, most quantum algorithms are not yet capable of computing systems of practical…

Quantum annealing is a promising heuristic method to solve combinatorial optimization problems, and efforts to quantify performance on real-world problems provide insights into how this approach may be best used in practice. We investigate…

Quantum Physics · Physics 2023-09-07 Kazuki Ikeda , Yuma Nakamura , Travis S. Humble

Stochastic algorithms are among the best for solving computationally hard search and reasoning problems. The runtime of such procedures is characterized by a random variable. Different algorithms give rise to different probability…

Artificial Intelligence · Computer Science 2013-02-08 Carla P. Gomes , Bart Selman

Quantum annealing is a computational paradigm in which optimisation problems are mapped onto the energy landscape of an interacting quantum system and explored through its dynamical evolution. By continuously transforming a simple initial…

Quantum Physics · Physics 2026-05-11 Steven Abel , Andrei Constantin , Luca A. Nutricati

Quantum annealing is a heuristic algorithm for searching the ground state of an Ising model. Heuristic algorithms aim to obtain near-optimal solutions with a reasonable computation time. Accordingly, many algorithms have so far been…

Quantum Physics · Physics 2022-11-09 Shuntaro Okada , Masayuki Ohzeki

Brief description on the state of the art of some local optimization methods: Quantum annealing Quantum annealing (also known as alloy, crystallization or tempering) is analogous to simulated annealing but in substitution of thermal…

Data Structures and Algorithms · Computer Science 2014-04-10 Alfonso de la Fuente Ruiz

Traditional approaches to portfolio optimization, often rooted in Modern Portfolio Theory and solved via quadratic programming or evolutionary algorithms, struggle with scalability or flexibility, especially in scenarios involving complex…

Computational Engineering, Finance, and Science · Computer Science 2025-07-23 Christian Oliva , Pedro R. Ventura , Luis F. Lago-Fernández

We propose and analyze the use of Bayesian optimization techniques to design quantum annealing schedules with minimal user and resource requirements. We showcase our scheme with results for two paradigmatic spin models. We find that…

Quantum annealing approximately solves combinatorial optimization problems by leveraging the principles of adiabatic quantum systems. In this approach, the system's Hamiltonian evolves from an initial general state to a problem-specific…

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

We explore to what extent path-integral quantum Monte Carlo methods can efficiently simulate the tunneling behavior of quantum adiabatic optimization algorithms. Specifically we look at symmetric cost functions defined over n bits with a…

Quantum Physics · Physics 2016-03-09 Lucas T. Brady , Wim van Dam

Quantum annealing is a heuristic optimization algorithm that exploits quantum evolution to approximately find lowest energy states. Quantum annealers have scaled up in recent years to tackle increasingly larger and more highly connected…

Quantum Physics · Physics 2025-07-04 Humberto Munoz Bauza , Daniel A. Lidar

This study systematically benchmarks several non-fault-tolerant quantum computing algorithms across four distinct optimization problems: max-cut, number partitioning, knapsack, and quantum spin glass. Our benchmark includes noisy…

Quantum Physics · Physics 2024-10-31 Santaro Kikuura , Ryoya Igata , Yuta Shingu , Shohei Watabe

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