IDEAS home Printed from https://ideas.repec.org/p/arx/papers/1004.0844.html
   My bibliography  Save this paper

Quantum Portfolios of Observables and the Risk Neutral Valuation Model

Author

Listed:
  • Fredrick Michael

Abstract

Quantum Portfolios of quantum algorithms encoded on qbits have recently been reported. In this paper a discussion of the continuous variables version of quantum portfolios is presented. A risk neutral valuation model for options dependent on the measured values of the observables, analogous to the traditional Black-Scholes valuation model, is obtained from the underlying stochastic equations. The quantum algorithms are here encoded on simple harmonic oscillator (SHO) states, and a Fokker-Planck equation for the Glauber P-representation is obtained as a starting point for the analysis. A discussion of the observation of the polarization of a portfolio of qbits is also obtained and the resultant Fokker-Planck equation is used to obtain the risk neutral valuation of the qbit polarization portfolio.

Suggested Citation

  • Fredrick Michael, 2010. "Quantum Portfolios of Observables and the Risk Neutral Valuation Model," Papers 1004.0844, arXiv.org.
    • Handle: RePEc:arx:papers:1004.0844
    as

    Download full text from publisher

    File URL: http://arxiv.org/pdf/1004.0844
    File Function: Latest version
    Download Restriction: no
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:arx:papers:1004.0844. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: arXiv administrators (email available below). General contact details of provider: http://arxiv.org/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.