Daily Papers

We apply supervised deep neural networks (DNNs) for pricing and calibration of both vanilla and exotic options under both diffusion and pure jump processes with and without stochastic volatility. We train our neural network models under different number of layers, neurons per layer, and various different activation functions in order to find which combinations work better empirically. For training, we consider various different loss functions and optimization routines. We demonstrate that deep neural networks exponentially expedite option pricing compared to commonly used option pricing methods which consequently make calibration and parameter estimation super fast.

We present a methodology to price options and portfolios of options on a gate-based quantum computer using amplitude estimation, an algorithm which provides a quadratic speedup compared to classical Monte Carlo methods. The options that we cover include vanilla options, multi-asset options and path-dependent options such as barrier options. We put an emphasis on the implementation of the quantum circuits required to build the input states and operators needed by amplitude estimation to price the different option types. Additionally, we show simulation results to highlight how the circuits that we implement price the different option contracts. Finally, we examine the performance of option pricing circuits on quantum hardware using the IBM Q Tokyo quantum device. We employ a simple, yet effective, error mitigation scheme that allows us to significantly reduce the errors arising from noisy two-qubit gates.

Exotic hadrons are a new class of hadronic states whose properties do not allow them to be classified as conventional quark-antiquark mesons or three quark baryons. Finding new and understanding established exotic states is the most important topic in today's hadron spectroscopy and a promising avenue to advance our knowledge on Quantum Chromodynamics in the non-perturbative regime. While several high-quality reviews on the topic exist, they are all at an advanced level. The present article aims to address new-comers to the field with a simple introduction to exotic hadrons with an emphasis on the experimental studies.