Pseudo-Hermiticity and Removing Brownian Motion From Finance

@article{Hicks2020PseudoHermiticityAR,
  title={Pseudo-Hermiticity and Removing Brownian Motion From Finance},
  author={William Hicks},
  journal={arXiv: Mathematical Finance},
  year={2020}
}
  • William Hicks
  • Published 1 September 2020
  • Mathematics
  • arXiv: Mathematical Finance
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 partial differential equations of Mathematical Finance (such as the Black-Scholes equation) and how this relates to the non-arbitrage condition. We propose that one can use a Schrodinger equation to derive the probabilistic behaviour of the financial market, and discuss the benefits of doing so… 
1 Citations

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