The connection between multiple prices of an Option at a given time with single prices defined at different times: The concept of weak-value in quantum finance

Ivan Arraut, Alan Au, Alan Ching biu Tse, Carlos Segovia

Research output: Contribution to journalArticlepeer-review

7 Citations (Scopus)

Abstract

We introduce a new tool for predicting the evolution of an option for the cases where at some specific time, there is a high-degree of uncertainty for identifying its price. We work over cases where we can predict the evolution of the system by joining prices (one or more) for the Option, defined at some specific time with prices (one or more) defined at another instant. This is achieved by describing the evolution of the system through a financial Hamiltonian.

Original languageEnglish
Article number121028
JournalPhysica A: Statistical Mechanics and its Applications
Volume526
DOIs
Publication statusPublished - 15 Jul 2019

Keywords

  • Double slit experiment
  • Financial Hamiltonian
  • Option price
  • Probability conservation
  • Uncertainty in the price
  • Weak-Value

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