Monte-Carlo Option Pricing in Quantum Parallel

Monte-Carlo Option Pricing in Quantum Parallel | Research Square window.SnipcartSettings = { analytics: { enabled: false } }; (function() { var accessVector = localStorage.getItem('access_vector') || ''; window.dataLayer = window.dataLayer || []; if (accessVector) { window.dataLayer.push({ user: { profile: { profileInfo: { snid: accessVector } } } }); } })(); (function(w,d,s,l,i){w[l]=w[l]||[];w[l].push({'gtm.start':new Date().getTime(),event:'gtm.js'});var f=d.getElementsByTagName(s)[0],j=d.createElement(s),dl=l!='dataLayer'?'&l='+l:'';j.async=true;j.src='https://www.googletagmanager.com/gtm.js?id='+i+dl;f.parentNode.insertBefore(j,f);})(window,document,'script','dataLayer','GTM-K279D39R'); Browse Preprints In Review Journals COVID-19 Preprints AJE Video Bytes Research Tools Research Promotion AJE Professional Editing AJE Rubriq About Preprint Platform In Review Editorial Policies Our Team Advisory Board Help Center Sign In Submit a Preprint Cite Share Download PDF Research Article Monte-Carlo Option Pricing in Quantum Parallel Robert Scriba, Yuying Li, Jingbo B. Wang This is a preprint; it has not been peer reviewed by a journal. https://doi.org/ 10.21203/rs.3.rs-7333122/v1 This work is licensed under a CC BY 4.0 License Status: Under Revision Version 1 posted 7 You are reading this latest preprint version Abstract Financial derivative pricing is a significant challenge in finance, involving the valuation of instruments like options based on underlying assets. While some cases have simple solutions, many require complex classical computational methods like Monte Carlo simulations and numerical techniques. However, as derivative complexities increase, these methods face limitations in computational power. Cases involving Non-Vanilla Basket pricing, American Options, and derivative portfolio risk analysis need extensive computations in higher-dimensional spaces, posing challenges for classical computers. Quantum computing presents a promising avenue by harnessing quantum superposition and entanglement, allowing the handling of high-dimensional spaces effectively. In this paper, we introduce a self-contained and all-encompassing quantum algorithm that operates without reliance on oracles or presumptions. More specifically, we develop an effective stochastic method for simulating exponentially many potential asset paths in quantum parallel, leading to a highly accurate final distribution of stock prices. Furthermore, we demonstrate how this algorithm can be extended to price more complex options and analyze risk within derivative portfolios. Full Text Additional Declarations No competing interests reported. Cite Share Download PDF Status: Under Revision Version 1 posted Editorial decision: Revision requested 11 Mar, 2026 Reviews received at journal 04 Feb, 2026 Reviewers agreed at journal 06 Jan, 2026 Reviewers invited by journal 30 Dec, 2025 Editor assigned by journal 14 Aug, 2025 Submission checks completed at journal 14 Aug, 2025 First submitted to journal 09 Aug, 2025 You are reading this latest preprint version Research Square lets you share your work early, gain feedback from the community, and start making changes to your manuscript prior to peer review in a journal. As a division of Research Square Company, we’re committed to making research communication faster, fairer, and more useful. We do this by developing innovative software and high quality services for the global research community. Our growing team is made up of researchers and industry professionals working together to solve the most critical problems facing scientific publishing. Also discoverable on Platform About Our Team In Review Editorial Policies Advisory Board Help Center Resources Author Services Accessibility API Access RSS feed Manage Cookie Preferences © Research Square 2026 | ISSN 2693-5015 (online) Privacy Policy Terms of Service Do Not Sell My Personal Information {"props":{"pageProps":{"initialData":{"identity":"rs-7333122","acceptedTermsAndConditions":true,"allowDirectSubmit":false,"archivedVersions":[],"articleType":"Research Article","associatedPublications":[],"authors":[{"id":503307461,"identity":"04c62a05-3338-472b-9cae-5492ecf5d891","order_by":0,"name":"Robert Scriba","email":"","orcid":"","institution":"The University of Western Australia","correspondingAuthor":false,"prefix":"","firstName":"Robert","middleName":"","lastName":"Scriba","suffix":""},{"id":503307462,"identity":"b7de6dbc-032b-4c46-a50b-89c12e0ba0e2","order_by":1,"name":"Yuying Li","email":"","orcid":"","institution":"University of Waterloo","correspondingAuthor":false,"prefix":"","firstName":"Yuying","middleName":"","lastName":"Li","suffix":""},{"id":503307463,"identity":"e1698054-92d7-467d-bb1f-709321f9ba8f","order_by":2,"name":"Jingbo B. 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