Quantum Finance
Quantum Finance
Path Integrals and Hamiltonians for Options and Interest Rates
$104.00
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eBook
Financial mathematics is currently almost completely dominated by stochastic calculus. Presenting a completely independent approach, this book applies the mathematical and conceptual formalism of quantum mechanics and quantum field theory (with particular emphasis on the path integral) to the theory of options and to the modeling of interest rates. Many new results, accordingly, emerge from the author's perspective.
- Applies the formalism of quantum mechanics and quantum field theory to finance
- Contains a detailed discussion on the empirical aspects of the forward rate curve and comparison of the field theory model with market data
- Addresses many problems in finance that cannot be solved using other approaches
Product details
July 2007Paperback
9780521714785
336 pages
243 × 168 × 18 mm
0.544kg
5 tables
Available
Table of Contents
- Foreword
- Preface
- Acknowledgements
- 1. Synopsis
- Part I. Fundamental Concepts of Finance:
- 2. Introduction to finance
- 3. Derivative securities
- Part II. Systems with Finite Number of Degrees of Freedom:
- 4. Hamiltonians and stock options
- 5. Path integrals and stock options
- 6. Stochastic interest rates' Hamiltonians and path integrals
- Part III. Quantum Field Theory of Interest Rates Models:
- 7. Quantum field theory of forward interest rates
- 8. Empirical forward interest rates and field theory models
- 9. Field theory of Treasury Bonds' derivatives and hedging
- 10. Field theory Hamiltonian of forward interest rates
- 11. Conclusions
- Appendix A: mathematical background
- Brief glossary of financial terms
- Brief glossary of physics terms
- List of main symbols
- References
- Index.
