%0 Journal Article
%T Quantum Portfolios of Observables and the Risk Neutral Valuation Model
%A Fredrick Michael
%J Quantitative Finance
%D 2010
%I arXiv
%X Quantum Portfolios of quantum algorithms encoded on qbits have recently been reported. In this paper a discussion of the continuous variables version of quantum portfolios is presented. A risk neutral valuation model for options dependent on the measured values of the observables, analogous to the traditional Black-Scholes valuation model, is obtained from the underlying stochastic equations. The quantum algorithms are here encoded on simple harmonic oscillator (SHO) states, and a Fokker-Planck equation for the Glauber P-representation is obtained as a starting point for the analysis. A discussion of the observation of the polarization of a portfolio of qbits is also obtained and the resultant Fokker-Planck equation is used to obtain the risk neutral valuation of the qbit polarization portfolio.
%U http://arxiv.org/abs/1004.0844v1