An Introductory Note to Quantum Modeling in Finance

Gregory L. Light
Additional contact information
Gregory L. Light: Providence College, USA

European Journal of Applied Physics, 2023, vol. 5, issue 5, 16-20

Abstract: This paper introduces the basic construct of quantum mechanics to financial researchers by applying it to a modeling of the stock prices. We present the meanings of the wavefunction, the Hamiltonian operator and the Schrödinger's equation in common mathematical terms, with an illustration of how the ever-present binary random variable can be connected to the spin operator in physics.

Keywords: Binary spin; probability wave; quantum economics; wavefunction meaning (search for similar items in EconPapers)
Date: 2023
References: Add references at CitEc
Citations:

Downloads: (external link)
https://eu-opensci.org/index.php/ejphysics/article/view/11280 Abstract page (text/html)
https://eu-opensci.org/index.php/ejphysics/article/download/11280/2093 Full text (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:epw:physic:v:5:y:2023:i:5:id:11280

DOI: 10.24018/ejphysics.2023.5.5.280

Access Statistics for this article

More articles in European Journal of Applied Physics from European Open Science
Bibliographic data for series maintained by Support Team ().