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Financial Modeling Using Quantum Computing

You're reading from  Financial Modeling Using Quantum Computing

Product type Book
Published in May 2023
Publisher Packt
ISBN-13 9781804618424
Pages 292 pages
Edition 1st Edition
Languages
Authors (4):
Anshul Saxena Anshul Saxena
Profile icon Anshul Saxena
Javier Mancilla Javier Mancilla
Profile icon Javier Mancilla
Iraitz Montalban Iraitz Montalban
Profile icon Iraitz Montalban
Christophe Pere Christophe Pere
Profile icon Christophe Pere
View More author details

Table of Contents (16) Chapters

Preface 1. Part 1: Basic Applications of Quantum Computing in Finance
2. Chapter 1: Quantum Computing Paradigm 3. Chapter 2: Quantum Machine Learning Algorithms and Their Ecosystem 4. Chapter 3: Quantum Finance Landscape 5. Part 2: Advanced Applications of Quantum Computing in Finance
6. Chapter 4: Derivative Valuation 7. Chapter 5: Portfolio Management 8. Chapter 6: Credit Risk Analytics 9. Chapter 7: Implementation in Quantum Clouds 10. Part 3: Upcoming Quantum Scenario
11. Chapter 8: Simulators and HPC’s Role in the NISQ Era 12. Chapter 9: NISQ Quantum Hardware Roadmap 13. Chapter 10: Business Implementation 14. Index 15. Other Books You May Enjoy

Cost estimation

We briefly mentioned resource estimation, but we would like to highlight the importance of this ability when aiming for a sustainable adoption strategy.

Quantum computing is at an early stage, requiring continuous and complex maintenance tasks to provide the best possible service. This is something that classical computing resources have mastered for a long time. Due to the limited ecosystem of hardware providers and the status of the technology, specifically, when aiming for real hardware, we will see costs ramp up significantly, even for the simplest providers. That is why resource estimation is such a crucial step in any QC pipeline, particularly if the model’s training requires iterations:

Figure 7.26 – Cost for Quantinuum on Azure (below) and IonQ in AWS (above)

Figure 7.26 – Cost for Quantinuum on Azure (below) and IonQ in AWS (above)

As an example, we could take the European Call Pricing from Chapter 4 and extract its underlying quantum circuit, which we already know is composed of a block...

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