Quantum finance

Quantum finance - Quiz

1. Who first suggested that quantum physics is better suited to modeling human economic activity?

A) Asghar Qadir
B) Richard Feynman
C) Keith Meyer
D) Emmanuel Haven

2. In what year did Asghar Qadir make his suggestion about quantum physics and economic activity?

A) 1999
B) 2001
C) 2000
D) 1978

3. What does the parameter ħ in Haven's Schrödinger-based equation represent?

A) The amount of arbitrage present in the market
B) The bid value
C) The efficiency of the market
D) The transaction price

4. What is the key message in Emmanuel Haven's work regarding the Black–Scholes–Merton equation?

A) It is unrelated to the Schrödinger equation
B) It is a special case of the Schrödinger equation assuming market efficiency
C) It assumes the market is inefficient
D) It is a special case of the Ornstein–Uhlenbeck process

5. Who applied path integrals to several exotic options in quantum finance?

A) Emmanuel Haven
B) Asghar Qadir
C) Belal E. Baaquie
D) Edward Piotrowski

6. What process did Edward Piotrowski et al. assume the stock underlying the option follows?

A) Brownian motion
B) Ornstein–Uhlenbeck process
C) Wiener–Bachelier process
D) Poisson process

7. Which models have successfully used the approach of changing the underlying process assumption in the classical setting?

A) Hull–White and Cox–Ingersoll–Ross
B) Ornstein–Uhlenbeck and Wiener–Bachelier
C) Chen and Meyer
D) Black–Scholes–Merton and Cox–Ross–Rubinstein

8. Who builds on the work of Haven and others to question the market efficiency assumption?

A) Keith Meyer
B) Andrei Khrennikov
C) Richard Feynman
D) Luigi Accardi

9. What processes do Luigi Accardi and Andreas Boukas consider for the underlying stock in their quantum finance model?

A) Schrödinger and Feynman
B) Brownian and Poisson processes
C) Wiener and Bachelier processes
D) Ornstein–Uhlenbeck and Maxwell–Boltzmann

10. What is the quantum binomial model metaphorically compared to in the classical setting?

A) The Cox–Ross–Rubinstein classical binomial options pricing model
B) The Hull–White model
C) The Cox–Ingersoll–Ross model
D) The Black–Scholes–Merton model

11. What does the quantum binomial model collapse to when assuming stocks behave according to Maxwell–Boltzmann statistics?

A) The Black–Scholes–Merton model
B) The Ornstein–Uhlenbeck model
C) The Cox–Ingersoll–Ross model
D) The classical binomial model

12. Who provided the formula for quantum volatility in the context of the quantum binomial model?

A) Emmanuel Haven
B) Keith Meyer
C) Andrei Khrennikov
D) Belal E. Baaquie

13. What statistical method is replaced by Bose–Einstein statistics in the given option price formula?

A) Gibbs statistics
B) Fermi–Dirac statistics
C) Poisson statistics
D) Maxwell–Boltzmann statistics

14. What year did Patrick Rebentrost demonstrate a quantum algorithm for pricing financial derivatives?

A) 2020
B) 2018
C) 2019
D) 2016

15. What advantage does Patrick Rebentrost's quantum algorithm have over classical methods?

A) Square root advantage
B) Exponential advantage
C) Logarithmic advantage
D) Linear advantage

16. Who proposed an option-pricing model based on a quantum walk in 2020?

A) Baaquie
B) Patrick Rebentrost
C) David Orrell
D) Cox

17. According to Arioli and Valente, what is the reason for Baaquie's numerical success?

A) Quantum superposition
B) Quantum randomness
C) Effects other than quantum ones
D) Quantum entanglement

18. What critique does Rickles have regarding Baaquie's work?

A) Economic models should use imaginary numbers
B) Quantum mechanics is not applicable to finance
C) Empirical economic data are highly random
D) Empirical economic data are not random

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