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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…

We present a quantum algorithm for systems of (possibly inhomogeneous) linear ordinary differential equations with constant coefficients. The algorithm produces a quantum state that is proportional to the solution at a desired final time.…

Quantum Physics · Physics 2017-11-07 Dominic W. Berry , Andrew M. Childs , Aaron Ostrander , Guoming Wang

Quantum machine learning has the potential for a transformative impact across industry sectors and in particular in finance. In our work we look at the problem of hedging where deep reinforcement learning offers a powerful framework for…

While quantum computing provides an exponential advantage in solving system of linear equations, there is little work to solve system of nonlinear equations with quantum computing. We propose quantum Newton's method (QNM) for solving…

Quantum Physics · Physics 2025-12-29 Cheng Xue , Yu-Chun Wu , Guo-Ping Guo

Significant advances in the development of computing devices based on quantum effects and the demonstration of their use to solve various problems have rekindled interest in the nature of the "quantum computational advantage." Although…

Quantum Physics · Physics 2024-11-01 Aleksey K. Fedorov , Evgeniy O. Kiktenko , Nikolay N. Kolachevsky

A derivative is a financial security whose value is a function of underlying traded assets and market outcomes. Pricing a financial derivative involves setting up a market model, finding a martingale (``fair game") probability measure for…

Quantum Physics · Physics 2022-09-20 Patrick Rebentrost , Alessandro Luongo , Samuel Bosch , Seth Lloyd

We introduce a novel approach to solving dynamic programming problems, such as those in many economic models, on a quantum annealer, a specialized device that performs combinatorial optimization. Quantum annealers attempt to solve an…

General Economics · Economics 2023-06-08 Jesús Fernández-Villaverde , Isaiah Hull

We present a classical algorithm to find approximate solutions to instances of quadratic unconstrained binary optimisation. The algorithm can be seen as an analogue of quantum annealing under the restriction of a product state space, where…

Quantum Physics · Physics 2023-02-14 Joseph Bowles , Alexandre Dauphin , Patrick Huembeli , José Martinez , Antonio Acín

One of the problems frequently mentioned as a candidate for quantum advantage is that of selecting a portfolio of financial assets to maximize returns while minimizing risk. In this paper we formulate several real-world constraints for use…

Materials Science · Physics 2022-03-10 Salvatore Certo , Anh Dung Pham , Daniel Beaulieu

The classical simulation of quantum systems typically requires exponential resources. Recently, the introduction of a machine learning-based wavefunction ansatz has led to the ability to solve the quantum many-body problem in regimes that…

Disordered Systems and Neural Networks · Physics 2019-10-24 Joseph Gomes , Keri A. McKiernan , Peter Eastman , Vijay S. Pande

We propose a quantum algorithm to solve systems of nonlinear algebraic equations. In the ideal case the complexity of the algorithm is linear in the number of variables $n$, which means our algorithm's complexity is less than $O(n^{3})$ of…

Quantum Physics · Physics 2019-03-15 Peng Qian , Wei-Cong Huang , Gui-Lu Long

We discuss a model for quantum computing with initially mixed states. Although such a computer is known to be less powerful than a quantum computer operating with pure (entangled) states, it may efficiently solve some problems for which no…

Quantum Physics · Physics 2015-03-17 Michael Siomau , Stephan Fritzsche

Quantum annealing is a generic algorithm using quantum-mechanical fluctuations to search for the solution of an optimization problem. The present paper first reviews the fundamentals of quantum annealing and then reports on preliminary…

Disordered Systems and Neural Networks · Physics 2010-06-10 Masayuki Ohzeki , Hidetoshi Nishimori

We argue that entanglement is the essential non-classical ingredient which provides the computational speed-up in quantum algorithms as compared to algorithms based on the processes of classical physics.

Quantum Physics · Physics 2007-05-23 Richard Jozsa

We present a method to formulate the unit commitment problem in energy production as quadratic unconstrained binary optimization (QUBO) problem, which can be solved by classical algorithms and quantum computers. We suggest a first approach…

Quantum Physics · Physics 2023-01-04 M. C. Braun , T. Decker , N. Hegemann , S. F. Kerstan , F. Lorenz

Identifying and extracting the past information relevant to the future behaviour of stochastic processes is a central task in the quantitative sciences. Quantum models offer a promising approach to this, allowing for accurate simulation of…

Quantum Physics · Physics 2019-06-26 Qing Liu , Thomas. J. Elliott , Felix. C. Binder , Carlo Di Franco , Mile Gu

Quantum annealing has shown significant potential as an approach to near-term quantum computing. Despite promising progress towards obtaining a quantum speedup, quantum annealers are limited by the need to embed problem instances within the…

Data Structures and Algorithms · Computer Science 2018-07-31 Alastair A. Abbott , Cristian S. Calude , Michael J. Dinneen , Richard Hua

We study quantum algorithms that learn properties of a matrix using queries that return its action on an input vector. We show that for various problems, including computing the trace, determinant, or rank of a matrix or solving a linear…

Quantum Physics · Physics 2021-10-19 Andrew M. Childs , Shih-Han Hung , Tongyang Li

Quantum advantage is notoriously hard to find and even harder to prove. For example the class of functions computable with classical physics actually exactly coincides with the class computable quantum-mechanically. It is strongly believed,…

Quantum Physics · Physics 2015-10-07 Howard Dale , David Jennings , Terry Rudolph

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