We apply Gauge Theory of Arbitrage (GTA) {hep-th/9710148} to derivative pricing. We show how the standard results of Black-Scholes analysis appear from GTA and derive correction to the Black-Scholes equation due to a virtual arbitrage and speculators reaction on it. The model accounts for both violation of the no-arbitrage constraint and non-Brownian price walks which resemble real financial data. The correction is nonlocal and transform the differential Black-Scholes equation to an integro-differential one.
We investigate the quantum entanglement entropy for the four-dimensional Euclidean SU(3) gauge theory. We present the first non-perturbative calculation of the entropic $c$-function ($C(l)$) of SU(3) gauge theory in lattice Monte Carlo simulation using the replica method. For $0 leqslant l leqslant 0.7$~fm, where $l$ is the length of the subspace, the entropic $c$-function is almost constant, indicating conformally invariant dynamics. The value of the constant agrees with that perturbatively obtained from free gluons, with 20 % discrepancy. When $l$ is close to the Hadronic scale, the entropic $c$-function decreases smoothly, and it is consistent with zero within error bars at $l gtrsim 0.9$ fm.
We consider gauge theories of non-Abelian $finite$ groups, and discuss the 1+1 dimensional lattice gauge theory of the permutation group $S_N$ as an illustrative example. The partition function at finite $N$ can be written explicitly in a compact form using properties of $S_N$ conjugacy classes. A natural large-$N$ limit exists with a new t Hooft coupling, $lambda=g^2 log N$. We identify a Gross-Witten-Wadia-like phase transition at infinite $N$, at $lambda=2$. It is first order. An analogue of the string tension can be computed from the Wilson loop expectation value, and it jumps from zero to a finite value. We view this as a type of large-$N$ (de-)confinement transition. Our holographic motivations for considering such theories are briefly discussed.
We study two-dimensional integrable field theories from the viewpoint of the four-dimensional Chern-Simons-type gauge theory introduced recently. The integrable field theories are realized as effective theories for the four-dimensional theory coupled with two-dimensional surface defects, and we can systematically compute their Lagrangians and the Lax operators satisfying the zero-curvature condition. Our construction includes many known integrable field theories, such as Gross-Neveu models, principal chiral models with Wess-Zumino terms and symmetric-space coset sigma models. Moreover we obtain various generalization these models in a number of different directions, such as trigonometric/elliptic deformations, multi-defect generalizations and models associated with higher-genus spectral curves, many of which seem to be new.
Gauge theories form the foundation of modern physics, with applications ranging from elementary particle physics and early-universe cosmology to condensed matter systems. We demonstrate emergent irreversible behavior, such as the approach to thermal equilibrium, by quantum simulating the fundamental unitary dynamics of a U(1) symmetric gauge field theory. While this is in general beyond the capabilities of classical computers, it is made possible through the experimental implementation of a large-scale cold atomic system in an optical lattice. The highly constrained gauge theory dynamics is encoded in a one-dimensional Bose--Hubbard simulator, which couples fermionic matter fields through dynamical gauge fields. We investigate global quantum quenches and the equilibration to a steady state well approximated by a thermal ensemble. Our work establishes a new realm for the investigation of elusive phenomena, such as Schwinger pair production and string-breaking, and paves the way for more complex higher-dimensional gauge theories on quantum synthetic matter devices.
We study relativistic anyon field theory in 1+1 dimensions. While (2+1)-dimensional anyon fields are equivalent to boson or fermion fields coupled with the Chern-Simons gauge fields, (1+1)-dimensional anyon fields are equivalent to boson or fermion fields with many-body interaction. We derive the path integral representation and perform the lattice Monte Carlo simulation.