| Issue |
EPL
Volume 131, Number 6, September 2020
|
|
|---|---|---|
| Article Number | 68003 | |
| Number of page(s) | 7 | |
| Section | Interdisciplinary Physics and Related Areas of Science and Technology | |
| DOI | https://doi.org/10.1209/0295-5075/131/68003 | |
| Published online | 03 November 2020 | |
Spontaneous symmetry breaking in quantum finance
1 The Open University of Hong Kong - 30 Good Shepherd Street, Homantin, Kowloon, Hong Kong
2 Department of Marketing, The Chinese University of Hong Kong - Cheng Yu Tung Building, 12 Chak Cheung Street Shatin, N.T., Hong Kong
Received: 12 May 2020
Accepted: 22 September 2020
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.
PACS: 89.20.-a – Interdisciplinary applications of physics / 89.65.Gh – Economics; econophysics, financial markets, business and management / 11.30.Qc – Spontaneous and radiative symmetry breaking
© 2020 EPLA
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