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We present a quantum algorithm for European option pricing in finance, where the key idea is to work in the unary representation of the asset value. The algorithm needs novel circuitry and is divided in three parts: first, the amplitude…

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

Quantum computing and quantum Monte Carlo (QMC) are respectively the state-of-the-art quantum and classical computing methods for understanding many-body quantum systems. Here, we propose a hybrid quantum-classical algorithm that integrates…

Quantum Physics · Physics 2025-11-17 Yukun Zhang , Yifei Huang , Jinzhao Sun , Dingshun Lv , Xiao Yuan

Quantum Machine Learning (QML) holds the promise of enhancing machine learning modeling in terms of both complexity and accuracy. A key challenge in this domain is the encoding of input data, which plays a pivotal role in determining the…

As financial fraud becomes increasingly complex, effective detection methods are essential. Quantum Machine Learning (QML) introduces certain capabilities that may enhance both accuracy and efficiency in this area. This study examines how…

Quantum Physics · Physics 2026-02-12 Mansour El Alami , Nouhaila Innan , Muhammad Shafique , Mohamed Bennai

Quantum machine learning (QML) is a computational paradigm that seeks to apply quantum-mechanical resources to solve learning problems. As such, the goal of this framework is to leverage quantum processors to tackle optimization,…

Quantum Physics · Physics 2025-11-21 Su Yeon Chang , M. Cerezo

Quantum computing (QC) has the potential to revolutionize fields like machine learning, security, and healthcare. Quantum machine learning (QML) has emerged as a promising area, enhancing learning algorithms using quantum computers.…

Quantum Physics · Physics 2025-02-04 Suryansh Upadhyay , Swaroop Ghosh

We introduce two quantum algorithms to compute the Value at Risk (VaR) and Conditional Value at Risk (CVaR) of financial derivatives using quantum computers: the first by applying existing ideas from quantum risk analysis to derivative…

Quantum Physics · Physics 2024-04-17 Nikitas Stamatopoulos , B. David Clader , Stefan Woerner , William J. Zeng

Quantum machine learning (QML) has attracted considerable research interest, yet whether it offers practical benefits over classical approaches remains an open question. The choice of data encoding significantly influences QML performance,…

Quantum Physics · Physics 2026-05-19 Lena Tokuhiro , Amine Bentellis , Jeanette Miriam Lorenz

Quantum computation is expected to accelerate certain computational task over classical counterpart. Its most primitive advantage is its ability to sample from classically intractable probability distributions. A promising approach to make…

Quantum Physics · Physics 2024-07-26 Yuichiro Nakano , Hideaki Hakoshima , Kosuke Mitarai , Keisuke Fujii

Quantum computers (QCs) must implement quantum error correcting codes (QECCs) to protect their logical qubits from errors, and modeling the effectiveness of QECCs on QCs is an important problem for evaluating the QC architecture. The…

Quantum Physics · Physics 2009-11-13 Eric Chi , Stephen A. Lyon , Margaret Martonosi

Recent advancements in quantum computing (QC) and machine learning (ML) have fueled significant research efforts aimed at integrating these two transformative technologies. Quantum machine learning (QML), an emerging interdisciplinary…

Quantum Physics · Physics 2025-04-24 Samuel Yen-Chi Chen , Zhiding Liang

Pricing a multi-asset derivative is an important problem in financial engineering, both theoretically and practically. Although it is suitable to numerically solve partial differential equations to calculate the prices of certain types of…

Quantum Physics · Physics 2022-07-05 Kenji Kubo , Koichi Miyamoto , Kosuke Mitarai , Keisuke Fujii

Computing accurate yet efficient approximations to the solutions of the electronic Schr\"odinger equation has been a paramount challenge of computational chemistry for decades. Quantum Monte Carlo methods are a promising avenue of…

Chemical Physics · Physics 2023-09-25 Zeno Schätzle , Bernát Szabó , Matĕj Mezera , Jan Hermann , Frank Noé

Quantum Finance represents the synthesis of the techniques of quantum theory (quantum mechanics and quantum field theory) to theoretical and applied finance. After a brief overview of the connection between these fields, we illustrate some…

Soft Condensed Matter · Physics 2017-08-23 Belal E. Baaquie , Claudio Coriano , Marakani Srikant

We explore the efficacy of the novel use of parametrised quantum circuits (PQCs) as quantum neural networks (QNNs) for forecasting time series signals with simulated quantum forward propagation. The temporal signals consist of several…

Quantum Physics · Physics 2022-02-02 Dimitrios Emmanoulopoulos , Sofija Dimoska

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

Inspired by recent progress in quantum algorithms for ordinary and partial differential equations, we study quantum algorithms for stochastic differential equations (SDEs). Firstly we provide a quantum algorithm that gives a quadratic…

Quantum Physics · Physics 2021-06-30 Dong An , Noah Linden , Jin-Peng Liu , Ashley Montanaro , Changpeng Shao , Jiasu Wang

In this study, we give an extension of Montanaro's arXiv/archive:1504.06987 quantum Monte Carlo method, tailored for computing expected values of random variables that exhibit infinite variance. This addresses a challenge in analyzing…

Quantum Physics · Physics 2024-03-08 Jose Blanchet , Mario Szegedy , Guanyang Wang

This study investigates uncertainty quantification (UQ) using quantum-classical hybrid machine learning (ML) models for applications in complex and dynamic fields, such as attaining resiliency in supply chain digital twins and financial…

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