Editing Finance (section)

=== Quantum finance ===
{{ref improve section|date=April 2025}}
{{Main|Quantum finance}}
Quantum finance involves applying quantum mechanical approaches to financial theory, providing novel methods and perspectives in the field.<ref>{{Cite journal |last1=Focardi |first1=Sergio |last2=Fabozzi |first2=Frank J. |last3=Mazza |first3=Davide |date=2020-08-31 |title=Quantum Option Pricing and Quantum Finance |url=http://pm-research.com/lookup/doi/10.3905/jod.2020.1.111 |journal=The Journal of Derivatives |language=en |volume=28 |issue=1 |pages=79–98 |doi=10.3905/jod.2020.1.111 |issn=1074-1240}}</ref>  ''Quantum'' ''finance'' is an interdisciplinary field, in which theories and methods developed by ''quantum'' physicists and economists are applied to solve financial problems. It represents a branch known as econophysics. Although ''quantum'' computational methods have been around for quite some time and use the basic principles of physics to better understand the ways to implement and manage cash flows, it is mathematics that is actually important in this new scenario<ref>{{Cite journal |last=Ristic |first=Kristijan |date=2–3 December 2021 |title=New Financial Future: Digital Finance As a key Aspect of Financial Innovation |url=https://www.proquest.com/docview/2616890742 |journal=75th International Scientific Conference on Economic and Social Development |pages=283–288 |id={{ProQuest|2616890742}} }}</ref> Finance theory is heavily based on financial instrument pricing such as [[stock option]] pricing. Many of the problems facing the finance community have no known analytical solution. As a result, numerical methods and computer simulations for solving these problems have proliferated. This research area is known as [[computational finance]]. Many computational finance problems have a high degree of computational complexity and are slow to converge to a solution on classical computers. In particular, when it comes to option pricing, there is additional complexity resulting from the need to respond to quickly changing markets. For example, in order to take advantage of inaccurately priced stock options, the computation must complete before the next change in the almost continuously changing stock market. As a result, the finance community is always looking for ways to overcome the resulting performance issues that arise when pricing options. This has led to research that applies alternative computing techniques to finance. Most commonly used quantum financial models are quantum continuous model, quantum binomial model, multi-step quantum binomial model etc.