Goldman Sachs and QC Ware Predict Options Pricing With Quantum Computers

Goldman Taps Startup to Explore Quantum Computing

In brief…

+  In the coming months, QC Ware will help Goldman Sachs determine whether quantum computing could be used to speed up a computational algorithm known as Monte Carlo. The algorithm is used to calculate the theoretical value of an option, or a contract that gives individuals the right to buy or sell an underlying asset at a specific price and time.

Goldman Sachs Group Inc. has teamed up with a quantum-computing startup to explore how the nascent technology could be used to speed up financial calculations and artificial-intelligence-based decision making.

+  A Goldman executive said last month that when quantum computing goes mainstream, the financial-services industry could be the first to benefit because a quantum algorithm could be deployed to a new financial model in days or weeks, while approving a new material or drug discovered by a quantum computer is likely to take years.

+  Quantum-computing technology could also be useful in speeding up AI-based calculations that help determine trading strategies for clients, Mr. Burchard said. Theoretically, quantum computing has “some very attractive applications,” he said. But today’s quantum machines face numerous hardware challenges, meaning potential business value from the technology could still be many years away.

Source:  WSJ.  Sara Castellanos,  Goldman Taps Startup to Explore Quantum Computing…

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