Intermediate Qutrit-based improved quantum arithmetic operations with application on financial derivative pricing

Efficient quantum realizations of arithmetic operations, such as multiplication/division, addition/subtraction, square root, and arcsine — are of utmost importance for several quantum algorithms of practical importance. In the literature, such implementations are reported with the objective of minimizing qubit count, Toffoli/T/CNOT gate count, logical depth, quantum volume, and other commonly used metrics. By extending the realm of quantum states to higher dimensions, it has been demonstrated recently that intermediate qutrits can be leveraged to reduce ancilla qubits, thereby reducing qubit count. In this paper, we have incorporated this approach to prepare efficient implementation for several quantum arithmetic operations, obtaining significantly lowered qubit count. As an exemplary application, we study derivative pricing, in which, quantum arithmetic circuits are necessary for path loading using the re-parameterization method, as well as the payoff calculation. The intermediate qutrit approach requires to access higher energy levels, making the design prone to errors. Nevertheless, we show that the overall decrease in the error probability of error is significant owing to the fact that we achieve circuit robustness compared to the qubit-only approach in this NISQ era. We also study how we may achieve possible effectiveness with fewer gate counts of the proposed approach in the fault-tolerant setting.