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Finance

The Convergence Wall

Finance often asks for an average over possible futures. Classical Monte Carlo is the workhorse for that job, but its error falls only as \(1/\sqrt{N}\). One more decimal digit of accuracy therefore needs roughly 100 times as many samples.

Unit 5 keeps the option price classical. Its quantum circuit reads a compiled phase for the fraction of eight uniformly weighted price bins above the strike, exposing the amplitude-estimation mechanism after state preparation and oracle construction have been supplied.