Quantum finance

Quantum finance - Quiz

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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 Black–Scholes–Merton model
D) The Cox–Ingersoll–Ross 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) Andrei Khrennikov
B) Belal E. Baaquie
C) Emmanuel Haven
D) Keith Meyer

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

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

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

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

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

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

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

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

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

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

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

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

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