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arXiv · 2011.05278

Spontaneous symmetry breaking in Quantum Finance

Ivan Arraut·Alan Au·Alan Ching-biu Tse
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Abstract

We analyze the phenomena of spontaneous symmetry breaking in Quantum Finance by using as a starting point the Black-Scholes (BS) and the Merton-Garman (MG) equations expressed in the Hamiltonian form. In this scenario the martingale condition (state) corresponds to the vacuum state which becomes degenerate when the symmetry of the system is spontaneously broken. We then analyze the broken symmetries of the system and we interpret from the perspective of Financial markets the possible appearance of the Nambu-Goldstone bosons.

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Ivan Arraut, Alan Au, Alan Ching-biu Tse. 2020-11-05. Spontaneous symmetry breaking in Quantum Finance. https://doi.org/10.1209/0295-5075/131/68003

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