Abstract
This chapter introduces two vital contemporary finance engineering theories: chaos and fractals. It explains the duality behavior of financial markets modeled by these two theories, and more importantly, on how they are related to quantum finance for financial engineering in contemporary financial institutions. As mentioned in this chapter, chaos and fractals are sides of the same coin. They show us two ways of looking (modeling) the world’s dynamics and all physical phenomena. Just like the particle–wave duality in quantum theory is about the same scenario in different (mathematical) languages. But looking from different perspective, chaos and fractals, in fact, can be considered as mathematical (and hence computational) way to describe the particle–wave duality in terms of nonlinear equations, which is totally coherent with the computational model of quantum finance and price level (QPL) evaluation to form an important component of quantum finance.
The theory of chaos and theory of fractals are separate but have very strong intersections. That is one part of chaos theory is geometrically expressed by fractal shapes.
Benoit Mandelbrot (1924–2010)
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Lee, R.S.T. (2020). Chaos and Fractals in Quantum Finance. In: Quantum Finance. Springer, Singapore. https://doi.org/10.1007/978-981-32-9796-8_8
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DOI: https://doi.org/10.1007/978-981-32-9796-8_8
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