Things I sometimes wonder: how would we know if quant hedge funds had got their hands on quantum computer tech? Would they tell us? What would the impact on the market/performance be? Would they consciously underperform their potential not to draw attention to themselves?
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Isn’t being able to price options accurately kind of one and the same as price prediction?
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Options that need Monte Carlo pricing are the weird exotics that you do OTC with huge spreads. Deals negotiated over the phone or Bloomberg chat. Money to be made if you can price it better than the dealer but I think that’s mostly a case of having better models, not faster.
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Also I don’t think you have to have perfect price prediction. Just be more right than wrong.
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You'd be able to bypass all encryption on the internet FFS. Insider trading would be a hell of a lot easier!
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