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arxiv: 1604.01447 · v1 · pith:BWZRXH6Inew · submitted 2016-04-05 · 💱 q-fin.MF

Relativistic Quantum Finance

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keywords distributionequationgeneralizedinvariantlimittransformationsunderaddition
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Employing the Klein-Gordon equation, we propose a generalized Black-Scholes equation. In addition, we found a limit where this generalized equation is invariant under conformal transformations, in particular invariant under scale transformations. In this limit, we show that the stock prices distribution is given by a Cauchy distribution, instead of a normal distribution.

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