# 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…

## 5 Citations

### Pseudo-Hermiticity and Removing Brownian Motion From Finance

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In this article we apply the methods of quantum mechanics to the study of the financial markets. Specifically, we discuss the Pseudo-Hermiticity of the Hamiltonian operators associated to the typical…

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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…

### Wild Randomness and the Application of Hyperbolic Diffusion in Financial Modelling

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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…

### Solving the Deformed Woods–Saxon Potential with $$\eta $$ η -Pseudo-hermetic Generator

- PhysicsArabian Journal for Science and Engineering
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In this paper, we present a general method to solve the non-hermetic potentials with PT symmetry using the definition of two $$\eta $$ η -pseudo-hermetic and first-order operators. This generator…

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