We present a methodology to price options and portfolios of options on a gate-based quantum computer using amplitude estimation, an algorithm which provides a quadratic speedup compared to classical Monte Carlo methods. The options that we cover include vanilla options, multi-asset options and path-dependent options such as barrier options. We put an emphasis on the implementation of the quantum circuits required to build the input states and operators needed by amplitude estimation to price the different option types. Additionally, we show simulation results to highlight how the circuits that we implement price the different option contracts. Finally, we examine the performance of option pricing circuits on quantum hardware using the IBM Q Tokyo quantum device. We employ a simple, yet effective, error mitigation scheme that allows us to significantly reduce the errors arising from noisy two-qubit gates.

Quantum computers offer an intriguing path for a paradigmatic change of computing in the natural sciences and beyond, with the potential for achieving a so-called quantum advantage—namely, a significant (in some cases exponential) speedup of numerical simulations. The rapid development of hardware devices with various realizations of qubits enables the execution of small-scale but representative applications on quantum computers. In particular, the high-energy physics community plays a pivotal role in accessing the power of quantum computing, since the field is a driving source for challenging computational problems. This concerns, on the theoretical side, the exploration of models that are very hard or even impossible to address with classical techniques and, on the experimental side, the enormous data challenge of newly emerging experiments, such as the upgrade of the Large Hadron Collider. In this Roadmap paper, led by CERN, DESY, and IBM, we provide the status of high-energy physics quantum computations and give examples of theoretical and experimental target benchmark applications, which can be addressed in the near future. Having in mind hardware with about 100 qubits capable of executing several thousand two-qubit gates, where possible, we also provide resource estimates for the examples given using error-mitigated quantum computing. The ultimate declared goal of this task force is therefore to trigger further research in the high-energy physics community to develop interesting use cases for demonstrations on near-term quantum computers. Published by the American Physical Society 2024

There is an increasing interest in quantum algorithms for problems of integer programming and combinatorial optimization. Classical solvers for such problems employ relaxations, which replace binary variables with continuous ones, for instance in the form of higher-dimensional matrix-valued problems (semidefinite programming). Under the Unique Games Conjecture, these relaxations often provide the best performance ratios available classically in polynomial time. Here, we discuss how to warm-start quantum optimization with an initial state corresponding to the solution of a relaxation of a combinatorial optimization problem and how to analyze properties of the associated quantum algorithms. In particular, this allows the quantum algorithm to inherit the performance guarantees of the classical algorithm. We illustrate this in the context of portfolio optimization, where our results indicate that warm-starting the Quantum Approximate Optimization Algorithm (QAOA) is particularly beneficial at low depth. Likewise, Recursive QAOA for MAXCUT problems shows a systematic increase in the size of the obtained cut for fully connected graphs with random weights, when Goemans-Williamson randomized rounding is utilized in a warm start. It is straightforward to apply the same ideas to other randomized-rounding schemes and optimization problems.

Reaching high-speed, high-fidelity qubit operations requires precise control over the shape of the underlying pulses. For weakly anharmonic systems, such as superconducting transmon qubits, short gates lead to leakage to states outside of the computational subspace. Control pulses designed with open-loop optimal control may reduce such leakage. However, model inaccuracies can severely limit the usability of such pulses. We implemented a closed-loop optimization that simultaneously adapts all control parameters based on measurements of a cost function built from Clifford gates. We directly optimize the amplitude and phase of each sample point of the digitized control pulse. We thereby fully exploit the capabilities of the pulse generation electronics and create a 4.16 ns single-qubit pulse with 99.76 % fidelity and 0.044 % leakage. This is a sevenfold reduction of the leakage rate and a threefold reduction in standard errors of the best DRAG pulse we have calibrated at such short durations on the same system.

We present and analyze a quantum algorithm to estimate credit risk more efficiently than Monte Carlo simulations can do on classical computers. More precisely, we estimate the economic capital requirement, i.e. the difference between the Value at Risk and the expected value of a given loss distribution. The economic capital requirement is an important risk metric because it summarizes the amount of capital required to remain solvent at a given confidence level. We implement this problem for a realistic loss distribution and analyze its scaling to a realistic problem size. In particular, we provide estimates of the total number of required qubits, the expected circuit depth, and how this translates into an expected runtime under reasonable assumptions on future fault-tolerant quantum hardware.