communications in statistics: simulation and computation2015Vol. 8pp. 30-33
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racorean2015journalare
Abstract
Writing the article “Time independent pricing of options in range bound markets” [1], the question in the title came
naturally to my mind. It is stated, in the above article, that in certain market conditions the stock price is subjected to an
equation that exactly matches a time independent Schrodinger equation. The time independent equation for options
valuation is used further to explain a stock market phenomenon that resembles an α particle decay tunneling effect. The
transmission coefficient for the stock price tunneling effect it is also deduced. Although, it may not have important impact
in quantum physics, the philosophical aspects residing in the use of quantum mechanics for stock market specific are very
important.