FIN 609 (FIN 6090): Quantum Computing in Finance

Contents
This course covers the principles and economics of quantum computing and its potential applications in finance. It introduces the basics of quantum computing for a non-technical audience and discusses the state of current hardware developments. Considered applications include portfolio optimization and simulations. For the applications, the course examines whether a potential quantum advantage holds in theory, on real machines, and in economic terms. Other topics include the risks that quantum computers pose to financial stability and the responses of financial institutions, regulators, and central banks.

Learning outcomes
Upon successful completion of this course, students are able to

• evaluate claims about quantum computing in finance by identifying which kind of advantage it may give (theoretical, practical computational, or economic)
• explain in plain language how a quantum computer works, including qubits, measurement, interference, and entanglement, and read a simple quantum circuit
• describe what current quantum hardware can do and distinguish the main hardware approaches
• explain how economic problems are trans­lated into problems that quantum optimization algorithms can address
• explain the risks that quantum computers pose to cryptography and how this matters for financial institutions, regulators, and central banks

Necessary prerequisites
–

Recommended prerequisites
Basic knowledge of statistics (probabilities, mean, variance), linear algebra (such as simple matrix multiplication), and of introductory finance (FIN5000 recommended)

Examiner Performing lecturer

Dr. Stefan Scharnowski Dr. Stefan Scharnowski