Present-day quantum computers are prototypes equipped with a limited number of noisy qubits that produce many errors and operate with low fidelity. However, quantum computers are expected to exceed the computational power of classical computers sometime in the latter part of this decade, and finance is expected to be one of the first sectors to showcase quantum advantage. JPMorgan Chase has a long history of advancing its trading technology, and recently developed a stochastic model on Deep Hedging and a realistic equity option market simulator based on generative adversarial networks (GANs). Hedging is a trading strategy designed to minimize risk, and quantum computers are expected to be able to outperform classical computers and solve complex financial applications such as portfolio optimization, risk analysis and option pricing.
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