I am wondering if anybody knows about some applications of instantons, ie the semiclassics, in finance.Instantons are solutions of eq of motion (in Euclide) with finite action. They are basically the non-trivial minimas of the action and are the point of expansion of the action in the semiclassical approximation.ThanksAsto

There probably are. Solutions or mutiple fourier to approx solutions to nonlinear equations. It would have to be specific equations that admit conformal solutions (or whatever). This is a dangerous question on this forum. Let's hope that the thread doesn't exceed one page.

Oh No! We can finally talk about quaternions in finance. Someone flip the switch.

QuoteOriginally posted by: chiral3There probably are. Solutions or mutiple fourier to approx solutions to nonlinear equations. It would have to be specific equations that admit conformal solutions (or whatever). This is a dangerous question on this forum. Let's hope that the thread doesn't exceed one page.Do you have a more concrete idea about where to look for it?Or any references to start with? It could be something like a problem that can be rewritten as a path integral with a non-gaussian action. Then one would try the trivial expansion and perturbation theory around it and see that this is not giving the whole thing... I don't know, I am just thinking.

If you have experience with instantons, yang-mills, whatever, and you are looking to apply you expertise to existing problems in finance, you may want to ask Omar. He keeps very well informed on attempts to reconcile some of the more modern developments in mathematical physics and finance. To answer your question, .... no, I have no references for you. We are still trying to figure out susy in finance.