Gauge Physics of Finance: simple introduction
Abstract
In this paper we state the fundamental principles of the gauge approach to financial economics and demonstrate the ways of its application. In particular, modelling of realistic price processes is considered for an example of S&P500 market index. Derivative pricing and portfolio theory are also briefly discussed.
- Publication:
-
arXiv e-prints
- Pub Date:
- November 1998
- DOI:
- arXiv:
- arXiv:cond-mat/9811197
- Bibcode:
- 1998cond.mat.11197I
- Keywords:
-
- Condensed Matter - Statistical Mechanics;
- Nonlinear Sciences - Adaptation and Self-Organizing Systems;
- Physics - Physics and Society;
- Quantitative Finance - Pricing of Securities;
- Quantum Physics
- E-Print:
- 16 pages, 2 figures, written for MoneyWeb