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QEF16 – A quantum jump model of option pricing
As seen in QEF15, stock market data follows q-variance and the q-distribution. Q-variance refers to the property that the expected variance of log returns x, corrected for drift, over a period T follows to good approximation the formula V(z)=^2+z^2/2 where z=xT. This property follows because we model price change as the displacement of a quantum [...]
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