Path integral modelling of interest rates, options and commodities

Abstract

The Acceleration Lagrangian method provides a flexible and powerful mathematical tool for modeling financial instruments. More complicated path-dependent instrument can be priced using quantum finance methods. A new option pricing formula can be derived and exactly fitting to the market. The supply and demand function can be studied through the potential and correlation. The quantum finance models is analytically and computationally tractable. New derivative needs to be developed in this framework.