I think that it is not as bad as you suggest. There are some very serious people that have published good work: Haven, Emmanuel (2002). "A discussion on embedding the Black–Scholes option pricing model in a quantum physics setting". Physica A: Statistical Mechanics and Its Applications. 304...
Agree with you on that, the book is terribly written. I am giving him the benefit of the doubt and trying to make sense of his model. You will find hard to believe, but the book was published by Springer. Springer used to be a very serious editorial house. I wrote to the author but haven't...
Economists know nothing about Quantum Mechanics. This is a question about re-scaling of a function, that is not the wave function but a distribution function. The model is for economists but the theory is pure physics. I thought is related to some kind of statistics because of the presence of...
Many thanks. The wiki article is interesting but it deals with other aspects of the theory, like the quantum binomial model. I am looking for the explanation of a very specific question regarding the scaling/normalization of the price function.
Dear all,
Dr. Raymond S. T. Lee in his book on Quantum Finance (page 112), normalizes quantum price return QPR(n) using the following scaling:
Normalized QPR(n)=1+0.21*sigma*QPR(n).
I don't know of any way of explaining this equation.
sigma is the standard deviation of the wave function...