This is Quantic’s last article “Quantum unary approach to option pricing“, by Sergi Ramos-Calderer, Adrián Pérez-Salinas, Diego García-Martín, Carlos Bravo-Prieto, Jorge Cortada, Jordi Planagumà, José I. Latorre, available in ArXiv
This paper introduces a novel algorithm for European option pricing that uses the unary representation of the asset price. That is, each qubit maps into a single price of the underlying asset.
The amplitude distributor that uploads the expected price evolution to the qubit register and the circuit that encodes the estimated payoff into an ancilla are remarkably simple in the unary representation.
The amplitude distributor only requires first neighbor interactions between qubits, therefore a simplified chip architecture is enough to run the algorithm.
This scheme allows for a post-processing procedure that results in error mitigation for Noisy Intermediate-Scale Quantum devices. This algorithm is more robust to noise their usual binary
Option pricing in this unary representation can be beneficial for near-term quantum computers.