An Introductory Note to Quantum Modeling in Finance quantum finance



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Submitted Aug 27, 2023
Published Oct 5, 2023
10.24018/ejphysics.2023.5.5.280

Abstract viewed = 183 times

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This paper introduces the basic construct of quantum mechanics to financial researchers by applying it to a modeling of the stock prices. We present the meanings of the wavefunction, the Hamiltonian operator and the Schrödinger's equation in common mathematical terms, with an illustration of how the ever-present binary random variable can be connected to the spin operator in physics.

Keywords: Binary spin probability wave quantum economics wavefunction meaning

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