Are Financial Markets an aspect of Quantum World?

TL;DR

This paper explores the analogy between quantum mechanics and stock market behavior, proposing a quantum-inspired model for option pricing in range-bound markets and explaining market phenomena through quantum tunneling concepts.

Contribution

It introduces a novel application of the time independent Schrödinger equation to model stock prices and market phenomena, bridging quantum physics and financial market analysis.

Findings

Stock prices in certain conditions follow a Schrödinger-like equation.

Market phenomena resemble quantum tunneling effects.

Transmission coefficients for stock price tunneling are derived.

Abstract

Writing the article-Time independent pricing of options in range bound markets; 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 alpha 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.