Book Image

Financial Modeling Using Quantum Computing

By : Anshul Saxena, Javier Mancilla, Iraitz Montalban, Christophe Pere
5 (1)
Book Image

Financial Modeling Using Quantum Computing

5 (1)
By: Anshul Saxena, Javier Mancilla, Iraitz Montalban, Christophe Pere

Overview of this book

Quantum computing has the potential to revolutionize the computing paradigm. By integrating quantum algorithms with artificial intelligence and machine learning, we can harness the power of qubits to deliver comprehensive and optimized solutions for intricate financial problems. This book offers step-by-step guidance on using various quantum algorithm frameworks within a Python environment, enabling you to tackle business challenges in finance. With the use of contrasting solutions from well-known Python libraries with quantum algorithms, you’ll discover the advantages of the quantum approach. Focusing on clarity, the authors expertly present complex quantum algorithms in a straightforward, yet comprehensive way. Throughout the book, you'll become adept at working with simple programs illustrating quantum computing principles. Gradually, you'll progress to more sophisticated programs and algorithms that harness the full power of quantum computing. By the end of this book, you’ll be able to design, implement and run your own quantum computing programs to turbocharge your financial modelling.
Table of Contents (16 chapters)
1
Part 1: Basic Applications of Quantum Computing in Finance
5
Part 2: Advanced Applications of Quantum Computing in Finance
10
Part 3: Upcoming Quantum Scenario

Foundational quantum algorithms

A review of foundational quantum algorithms is necessary to understand the state-of-the-art progress in QC and its potential to overcome problems intractable for classical computation. Starting from the basic concepts, an algorithm is a series of computer-executable steps to conduct a computation or solve a problem (Montanaro, 2016). Consequently, an algorithm is considered quantum when it successfully performs on a quantum machine. Generally speaking, all classical algorithms could theoretically perform on such a system. Nevertheless, in a strict sense, quantum algorithms refer to those with at least one step involving quantum mechanical properties, such as superposition or entanglement. One of the main attributes of quantum computers is quantum parallelism, which allows for many existing quantum algorithms (Álvarez et al., 2008).

A quantum circuit often characterizes a quantum algorithm. A quantum circuit is a structure where the problem-solving...