Quantum Finance

Abstract

Finance has gone through decades under the guidance of efficient market hypothesis and rational pricing model, but has encountered profound challenges in the face of financial crises and market anomalies: irrational fluctuations in asset prices, herding effects, foam and crashes, exposing the mechanical limitations of classical financial theory. This book constructs a complete theoretical system of quantum finance using probability, entanglement, and measurement collapse as core tools in quantum mechanics. The whole book consists of six parts and thirty chapters. The first part establishes the philosophical foundation and quantum probability framework of quantum finance; The second part of the system constructs the theory of quantum asset pricing, covering quantum CAPM, quantum arbitrage pricing, quantum option pricing, and quantum interest rate term structure; The third part expands quantum risk management, covering quantum VaR, stress testing, and systemic risk; Part Four: Constructing Quantum Portfolio and Asset Allocation Theory; The fifth part delves into the microstructure of quantum markets and quantum behavioral finance; Chapter 6: Prospects for Quantum Computing, Quantum Machine Learning, Quantum Blockchain Applications in Finance, and Quantum Financial Regulation. The core insight of this book is that financial asset prices are not deterministic facts, but rather probabilities of superposition; Market price discovery is not a linear equilibrium, but the emergence of quantum entanglement and measurement collapse among market participants; The financial crisis is not an exogenous shock, but a quantum phase transition under critical conditions. The book has a complete system and rigorous mathematics, providing a cutting-edge theoretical framework for financial researchers, quantitative investment practitioners, and risk management professionals to understand the quantum nature of financial markets.