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

Introduction to types of financial institutions

The financial industry is integral to the health and growth of a country’s economy. This sector is responsible for providing essential financial services to both businesses and retail consumers. As depicted in Figure 3.1, the financial sector is a diverse ecosystem, encompassing banks, investment houses, insurance companies, real estate brokers, consumer financing firms, mortgage lenders, and real estate investment trusts (REITs). These organizations collectively contribute to the stability and expansion of the economy.

In addition to the provision of loans and mortgages, the financial industry plays a critical role in offering insurance services to individuals and enterprises. This ensures that both personal and commercial assets are protected against unforeseen risks, fostering a sense of security and stability within the economy. Employment opportunities within the financial sector are vast, with millions of people working...