Quantum Circuits for Black-Scholes Equations via Schrödingerisation
Abstract
In this paper, we construct quantum circuits for the Black-Scholes equations, a cornerstone of financial modeling, based on a quantum algorithm that overcome the cure of high dimensionality. Our approach leverages the Schrödingerisation technique, which converts linear partial and ordinary differential equations with non-unitary dynamics into a system evolved by unitary dynamics. This is achieved through a warped phase transformation that lifts the problem into a higher-dimensional space, enabling the simulation of the Black-Scholes equation on a quantum computer. We will conduct a thorough complexity analysis to highlight the quantum advantages of our approach compared to existing algorithms. The effectiveness of our quantum circuit is substantiated through extensive numerical experiments.
Fields of Study & Subjects
Quantum Computing Algorithms and Architecture
Quantum Information and Cryptography
Quantum many-body systems
Publication details
- Journal / source
- Communications in Computational Physics
- Publisher
- Global Science Press
- Volume
- 40
- Issue
- 5
- Pages
- 1508–1536
- Publication date
- 3 July 2026
- Language
- EN