# Closed Quantum Black-Scholes: Quantum Drift and the Heisenberg Equation of Motion

@article{Hicks2020ClosedQB, title={Closed Quantum Black-Scholes: Quantum Drift and the Heisenberg Equation of Motion}, author={William Hicks}, journal={Risk Management eJournal}, year={2020} }

In this article we model a financial derivative price as an observable on the market state function. We apply geometric techniques to integrating the Heisenberg Equation of Motion. We illustrate how the non-commutative nature of the model introduces quantum interference effects that can act as either a drag or a boost on the resulting return. The ultimate objective is to investigate the nature of quantum drift in the Accardi-Boukas quantum Black-Scholes framework which involves modelling the…

## One Citation

Wild Randomness and the Application of Hyperbolic Diffusion in Financial Modelling

- Mathematics
- 2021

The application of the Cauchy distribution has often been discussed as a potential model of the financial markets. In particular the way in which single extreme, or "Black Swan", events can impact…

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