This article attempts to describe the continued fraction expansion of ÖD viewed as a Laurent series x-1. As the behavior of the continued fraction expansion of ÖD is related to the solvability of the polynomial Pell’s equation p2-Dq2=1 where D=f2+2g is monic quadratic polynomial with deg g<deg f and the solutions p, q must be integer polynomials. It gives a non-trivial solution if and only if the continued fraction expansion of ÖD is periodic.
Abstract
This paper introduces and demonstrates the use of quantum computers for asset–liability management (ALM). A summary of historical and current practices in ALM used by actuaries is given showing how the challenges have previously been met. We give an insight into what ALM may be like in the immediate future demonstrating how quantum computers can be used for ALM. A quantum algorithm for optimising ALM calculations is presented and tested using a quantum computer. We conclude that the discovery of the strange world of quantum mechanics has the potential to create investment management efficiencies. This in turn may lead to lower capital requirements for shareholders and lower premiums and higher insured retirement incomes for policyholders.
Asset–liability modelling in the quantum era