Quantum Architecture Search for Quantum Monte Carlo Integration via Conditional Parameterized Circuits with Application to Finance

Fuente: arXiv
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Main Authors: Wolf, Mark-Oliver, Ewen, Tom, Turkalj, Ivica
Format: Preprint
Published: 2023
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author Wolf, Mark-Oliver
Ewen, Tom
Turkalj, Ivica
author_facet Wolf, Mark-Oliver
Ewen, Tom
Turkalj, Ivica
contents Classical Monte Carlo algorithms can theoretically be sped up on a quantum computer by employing amplitude estimation (AE). To realize this, an efficient implementation of state-dependent functions is crucial. We develop a straightforward approach based on pretraining parameterized quantum circuits, and show how they can be transformed into their conditional variant, making them usable as a subroutine in an AE algorithm. To identify a suitable circuit, we propose a genetic optimization approach that combines variable ansatzes and data encoding. We apply our algorithm to the problem of pricing financial derivatives. At the expense of a costly pretraining process, this results in a quantum circuit implementing the derivatives' payoff function more efficiently than previously existing quantum algorithms. In particular, we compare the performance for European vanilla and basket options.
format Preprint
id arxiv_https___arxiv_org_abs_2304_08793
institution arXiv
publishDate 2023
record_format arxiv
spellingShingle Quantum Architecture Search for Quantum Monte Carlo Integration via Conditional Parameterized Circuits with Application to Finance
Wolf, Mark-Oliver
Ewen, Tom
Turkalj, Ivica
Quantum Physics
Pricing of Securities
Classical Monte Carlo algorithms can theoretically be sped up on a quantum computer by employing amplitude estimation (AE). To realize this, an efficient implementation of state-dependent functions is crucial. We develop a straightforward approach based on pretraining parameterized quantum circuits, and show how they can be transformed into their conditional variant, making them usable as a subroutine in an AE algorithm. To identify a suitable circuit, we propose a genetic optimization approach that combines variable ansatzes and data encoding. We apply our algorithm to the problem of pricing financial derivatives. At the expense of a costly pretraining process, this results in a quantum circuit implementing the derivatives' payoff function more efficiently than previously existing quantum algorithms. In particular, we compare the performance for European vanilla and basket options.
title Quantum Architecture Search for Quantum Monte Carlo Integration via Conditional Parameterized Circuits with Application to Finance
topic Quantum Physics
Pricing of Securities
url https://arxiv.org/abs/2304.08793