Gauge theory and financial market model

An introduction to modelling of the financial market by applying the gauge theory of modern theoretical physics is presented. The relationships between physics concepts and financial concepts are first described, followed by an explanation of the ideas in gauge theory and fibre bundle mathematics. We demonstrate how the combined structure of gauge theory and fibre bundles provides a framework for financial market models.A simple model of the foreign currency market and the Black-Schales equation are described as interesting examples of the gauge model.