Abstract
Hybrid Classical-Quantum computing has already arrived at several commercial quantum computers, offered to researchers and businesses. Here, applications are made to a model of financial options, Statistical Mechanics of Financial Markets (SMFM). These applications were published in many papers since the 1980's. This project only uses Classical (super-)computers to include quantum features of these models. Since 1989, an optimization code, Adaptive Simulated Annealing (ASA), has been to fit parameters in such models. Since 2015, a path-integral algorithm, PATHINT, used previously to accurately describe several systems in several disciplines, has been generalized from 1 dimension to N dimensions, and from classical to quantum systems, qPATHINT. Published papers have described the use of qPATHINT to neocortical interactions and financial options. The classical space by SMFM applies nonlinear nonequilibrium multivariate statistical mechanics to fit parameters in conditional short-time probability distributions, while the quantum space described by qPATHINT deals specifically with quantum systems, e.g., quantum money. This project thereby demonstrates how some hybrid classical-quantum systems may be calculated quite well using only classical (super-)computers.
Highlights
There are several companies offering commercial-grade Hybrid Classical-Quantum computers that can be accessed via the Cloud, e.g., Rigetti, D-Wave, Microsoft, and IBM [1]; see https://docs.ocean.dwavesys.com/projects/hybrid/en/latest/index.html https://www.rigetti.com/what https://azure.microsoft.com/en-us/solutions/hybrid-cloud-app/#overview https://www.ibm.com/it-infrastructure/z/capabilities/hybrid-cloud These companies typically offer Hybrid computing, consisting of Classical computers to run optimization program on parameters in systems that are described by quantum variables using their Quantum computers [2], Some studies show Quantum computing is still not possible for many systems, even with classical optimizers [3]
Quantum computing is rapidly growing, which will be applied in many ways to financial markets
Financial markets will be expanded to include quantum variables; financial markets will determine how Quantum Money (QM) is to be valued and how it may be exchanged with current financial instruments
Summary
There are several companies offering commercial-grade Hybrid Classical-Quantum computers that can be accessed via the Cloud, e.g., Rigetti, D-Wave, Microsoft, and IBM [1]; see https://docs.ocean.dwavesys.com/projects/hybrid/en/latest/index.html https://www.rigetti.com/what https://azure.microsoft.com/en-us/solutions/hybrid-cloud-app/#overview https://www.ibm.com/it-infrastructure/z/capabilities/hybrid-cloud These companies typically offer Hybrid computing, consisting of Classical computers to run optimization program on parameters in systems that are described by quantum variables using their Quantum computers [2], Some studies show Quantum computing is still not possible for many systems, even with classical optimizers [3]. These codes run on Classical computers, defining a Hybrid Classical-Quantum solely on a Classical computer. As with today’s technologies, probability distributions of prices in real markets will not generally be simple Gaussian or log-normal distributions that yield closed form options solutions. More details on how hybrid quantum-classical computing is being applied to this system currently is in another companion paper [20]
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
