In finance, a European call gives the buyer the right to buy some underlying asset such as a stock at some pre-determined strike price at a specific expiration date. The Black-Scholes equation is a fairly simple formula that can be easily written in Python for classical computing to value financial derivatives like the call option.
At the link below, IBM's cross-displinary quantum package for Python, Qiskit Aqua, seems to use qubits to price a European call option instead. Could someone give me a walk-through of what the code is doing line by line and how it compares to a classical Python code for pricing a European call? Are there any theoretical or numerical differences between classical and quantum pricing?
Also, is there an article being used as the source for the above Python script? My guess is that it's this one, but not sure since I don't yet have a background in matching quantum code with quantum formulas:
"Towards Pricing Financial Derivatives with an IBM Quantum Computer" https://arxiv.org/pdf/1904.05803.pdf