Spontaneous symmetry breaking in Quantum Finance

Ivan Arraut, Alan Au and Alan Ching-biu Tse

Papers from arXiv.org

Abstract: We analyze the phenomena of spontaneous symmetry breaking in Quantum Finance by using as a starting point the Black-Scholes (BS) and the Merton-Garman (MG) equations expressed in the Hamiltonian form. In this scenario the martingale condition (state) corresponds to the vacuum state which becomes degenerate when the symmetry of the system is spontaneously broken. We then analyze the broken symmetries of the system and we interpret from the perspective of Financial markets the possible appearance of the Nambu-Goldstone bosons.

Date: 2020-11
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Citations: View citations in EconPapers (3)

Published in EPL, 131 (2020) 68003

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Persistent link: https://EconPapers.repec.org/RePEc:arx:papers:2011.05278

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