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Pilot-Wave Theory and Financial Option Pricing

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Abstract

This paper tries to argue why pilot-wave theory could be of use in financial economics. We introduce the notion of information wave. We consider a stochastic guidance equation and part of the drift term of that equation makes reference to the phase of the wave. In order to embed information in financial option pricing we could use such a drift. We also briefly argue how we could embed information in the pricing kernel of the option price.

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Authors and Affiliations

  1. Department of AFM, University of Essex, Wivenhoe Park, C043SQ, Colchester, United Kingdom

    Emmanuel Haven

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  1. Emmanuel Haven
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Correspondence to Emmanuel Haven.

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PACS: 03, 89.65.Gh.

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Haven, E. Pilot-Wave Theory and Financial Option Pricing. Int J Theor Phys 44, 1957–1962 (2005). https://doi.org/10.1007/s10773-005-8973-3

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  • DOI: https://doi.org/10.1007/s10773-005-8973-3

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