Classical measure underpins the foundations of financial derivative pricing, as the classical expectation satisfies the essential principles of replicability (linearity) and no-arbitrage (positivity) required by any reasonable pricing model. Quantum measure extends this by allowing payoffs to be...

Classical measure underpins the foundations of financial derivative pricing, as the classical expectation satisfies the essential principles of replicability (linearity) and no-arbitrage (positivity) required by any reasonable pricing model. Quantum measure extends this by allowing payoffs to be...

Let X1,X2,… be independent random variables observed sequentially and such that X1,…,Xθ−1 have a common probability density p0, while Xθ,Xθ+1,… are all distributed according to p1≠p0. It is assumed that p0 and p1 are known, but the time change θ∈Z+ is unknown and the goal is to...