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An Overview of Quantum Finance Models

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Quantum Finance

Abstract

This chapter discusses the brief history of quantum finance, from Professor L. Bachelier’s theory of Speculation in 1900 to the latest works on quantum anharmonic oscillator theory of quantum finance. It also reviews the latest research and studies of quantum finance in the past 30 years. Through these, the study focuses on two major mathematical approaches and models of quantum finance: Feynman’s path integral approach and quantum anharmonic oscillator approach inclusive of their basic concepts, principal features, and financial and mathematical implications with their significances in the modeling of real-world financial markets. It also explores the future of quantum finance relating to intelligent finance systems’ development.

It is a curious historical fact that modern quantum mechanics began with two quite different mathematical formulations: the differential equation of Schrödinger and the matrix algebra of Heisenberg. The two apparently dissimilar approaches were proved to be mathematically equivalent.

Richard P. Feynman (1918–1988)

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Authors and Affiliations

  1. Division of Science and Technology, Beijing Normal University-Hong Kong Baptist University United International College (UIC), Zhuhai, Guangdong, China

    Raymond S. T. Lee

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  1. Raymond S. T. Lee
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Correspondence to Raymond S. T. Lee .

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Lee, R.S.T. (2020). An Overview of Quantum Finance Models. In: Quantum Finance. Springer, Singapore. https://doi.org/10.1007/978-981-32-9796-8_3

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  • DOI: https://doi.org/10.1007/978-981-32-9796-8_3

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  • Publisher Name: Springer, Singapore

  • Print ISBN: 978-981-32-9795-1

  • Online ISBN: 978-981-32-9796-8

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