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# A Path Integral Way to Option Pricing

## 1 Introduction

The classical theory of option pricing is based on the results found in 1973 by Black and Scholes  and, independently, Merton . Their pioneering work starts from the basic assumption that the asset prices follow the dynamics of a particular stochastic process (geometric Brownian motion), so that they have a lognormal distribution . In the case of an efficient market with no arbitrage possibilities, no dividends and constant volatilities, they found that the price of each financial derivative is ruled by an ordinary partial differential equation, known as the Black-Scholes-Merton (BSM) formula. In the most simple case of a so-called European option, the BSM equation can be explicitly solved to obtain an analytical formula for the price of the option . When we consider other financial derivatives, which are commonly traded in real markets and allow anticipated exercise and/or depend on the history of the underlying asset, the BSM formula fails to give an analytical result. Appropriate numerical procedures have been developed in the literature to price exotic financial derivatives with path-dependent features, as discussed in detail in Refs. . The aim of this work is to provide a contribution to the problem of efficient option pricing in financial analysis, showing how it is possible to use path integral methods to develop a fast and precise algorithm for the evaluation of option prices.

The path integral method, which traces back to the original work of Wiener and Kac in stochastic calculus  and of Feynman in quantum mechanics , is today widely employed in chemistry and physics, and very recently in finance too , because it gives the possibility of applying powerful analytical and numerical techniques . Following recent studies on the application of the path integral approach to the financial market as appeared in the econophysics literature (see Refs.  for a comprehensive list of references), this paper is devoted to present an original, efficient path integral algorithm to price financial derivatives, including those with path-dependent and early exercise features, and to compare the results with those obtained with the standard procedures known in the literature.

The paper is organized as follows. In Section 2 the basic ideas of the classical theory of option pricing are summarized, discussing the computational complexity associated to the evaluation of the price of a path-dependent option and reviewing the standard numerical procedures adopted in the literature. In Section 3 the path integral approach to option pricing is described and analytically developed in order to obtain an efficient procedure for the calculation of the transition probability associated to a given stochastic model of asset evolution. Theoretical and computational details to obtain fast predictions for path-dependent options are also described. As applications of the method, numerical results for European and American options in the BSM model are given in Section 4, together with comparisons with results known in the literature. A particularly simple and very quick semi-analytical approximation for the price of an American option is derived in Section 5, by exploiting the possibility of anticipated exercise for any time before the expiration date. Conclusions and possible perspectives are drawn in Section 6.

## 2 Option pricing: theory and numerical procedures

### 2.1 Classical theory and path-dependent options

The basic ingredient for the development of a theory of option pricing is a suitable model for the time evolution of the asset prices. The assumption of the BSM model is that the price $`S`$ of an asset is driven by a geometric Brownian motion and verifies the stochastic differential equation (SDE)

$$dS=\mu Sdt+\sigma Sdw,$$
(1)
which, by means of the Itô lemma, can be cast in the form of an arithmetic Brownian motion for the logarithm of $`S`$

$$d(\mathrm{ln}S)=Adt+\sigma dw,$$
(2)
where $`\sigma `$ is the volatility, $`A\left(\mu \sigma ^2/2\right)`$, $`\mu `$ is the drift parameter and $`w`$ is the realization of a Wiener process. By virtue of the properties of a Wiener process, eq. (2) may be written as

$$d(\mathrm{ln}S)=Adt+\sigma ϵ\sqrt{dt},$$
(3)
where $`ϵ`$ follows from a standardized normal distribution with mean 0 and variance 1.
Thus, in terms of the logarithms of the asset prices $`z^{}\mathrm{ln}S^{},z\mathrm{ln}S`$, the conditional transition probability $`p(z^{}|z)`$ to have at the time $`t^{}`$ a price $`S^{}`$ under the hypothesis that the price was $`S`$ at the time $`t<t^{}`$ is given by 111The correct way to indicate conditional transition probabilities is $`p(z^{},t^{}|z,t)`$. We omit the times in order to simplify the notation.

$$p(z^{}|z)=\frac{1}{\sqrt{2\pi (t^{}t)\sigma ^2}}\mathrm{exp}\left\{\frac{[z^{}(z+A(t^{}t))]^2}{2\sigma ^2(t^{}t)}\right\},$$
(4)
which is a gaussian distribution with mean $`z+A(t^{}t)`$ and variance $`\sigma ^2(t^{}t)`$.
If we require the options to be exercised only at specific times $`t_i,i=1,\mathrm{},n`$, the asset price, between two consequent times $`t_{i1}`$ and $`t_i`$, will follow eq. (3) and the related transition probability will be

$$p(z_i|z_{i1})=\frac{1}{\sqrt{2\pi \mathrm{\Delta }t\sigma ^2}}\mathrm{exp}\left\{\frac{[z_i(z_{i1}+A\mathrm{\Delta }t)]^2}{2\sigma ^2\mathrm{\Delta }t}\right\},$$
(5)
with $`\mathrm{\Delta }t=t_it_{i1}`$.

A time-evolution model for the asset price is strictly necessary in a theory of option pricing because the fair price at time $`t=0`$ of an option $`𝒪`$, without possibility of anticipated exercise before the expiration date or maturity $`T`$ (a so-called European option), is given by the scaled expectation value

$$𝒪(0)=e^{rT}E[𝒪(T)],$$
(6)
where $`r`$ is the risk-free interest and $`E[]`$ indicates the mean value, which can be computed only if a model for the asset underlying the option is understood. For example, the value $`𝒪`$ of an European call option at the maturity $`T`$ will be $`\mathrm{max}\{S_TX,0\}`$, where $`X`$ is the strike price, while for an European put option the value $`𝒪`$ at the maturity will be $`\mathrm{max}\{XS_T,0\}`$. It is worth emphasizing, for what follows, that the case of an European option is particularly simple, since in such a situation the price of the option can be evaluated by means of analytical formulae, which are obtained by solving the BSM partial differential equation with the appropriate boundary conditions . On the other hand, many further kinds of options are present in the financial markets, such as American options (options which can be exercised at any time up to the expiration date) and exotic options , i.e. derivatives with complicated payoffs or whose value depend on the whole time evolution of the underlying asset and not just on its value at the end. For such options with path-dependent and early exercise features no exact solutions are available and pricing them correctly is a great challenge.
Actually, in the case of options with possibility of anticipated exercise before the expiration date, the above discussion needs to be generalized, by introducing a slicing of the time interval $`T`$. Let us consider, for definiteness, the case of an option which can be exercised within the maturity but only at the times $`t_1=\mathrm{\Delta }t,t_2=2\mathrm{\Delta }t,\mathrm{},t_n=n\mathrm{\Delta }tT.`$ At each time slice $`t_{i1}`$ the value $`𝒪_{i1}`$ of the option will be the maximum between its expectation value at the time $`t_i`$ scaled with $`e^{r\mathrm{\Delta }t}`$ and its value in the case of anticipated exercise $`𝒪_{i1}^Y`$ 222For example, the value $`𝒪`$ of a call option in the case of exercise at the time $`t_{i1}`$ will be $`\mathrm{max}\{S_{i1}X,0\}`$, $`X`$ being the strike price.. If $`S_{i1}`$ denotes the price of the underlying asset at the time $`t_{i1}`$, we can thus write for each $`i=1,\mathrm{},n`$

$$𝒪_{i1}(S_{i1})=\mathrm{max}\{𝒪_{i1}^Y(S_{i1}),e^{r\mathrm{\Delta }t}E[𝒪_i|S_{i1}]\},$$
(7)
where $`E[𝒪_i|S_{i1}]`$ is the conditional expectation value of $`𝒪_i`$, i.e. its expectation value under the hypothesis of having the price $`S_{i1}`$ at the time $`t_{i1}`$. In this way, to get the actual price $`𝒪_0`$, it is necessary to proceed backward in time and calculate $`𝒪_{n1},\mathrm{},𝒪_1`$, where the value $`𝒪_n`$ of the option at maturity is nothing but $`𝒪_n^Y(S_n)`$. It is therefore clear that evaluating the price of an option with early exercise features means to simulate the evolution of the underlying asset price (to obtain the $`𝒪_i^Y`$) and to calculate a (usually large) number of expectation conditional probabilities.

### 2.2 Standard numerical procedures

To value derivatives when analytical formulae are not available, appropriate numerical techniques have to be advocated. They involve the use of Monte Carlo (MC) simulation, binomial trees (and their improvements) and finite difference methods .

A natural way to simulate price paths is to discretize eq. (3) as

$$\mathrm{ln}S(t+\mathrm{\Delta }t)\mathrm{ln}S(t)=A\mathrm{\Delta }t+\sigma ϵ\sqrt{\mathrm{\Delta }t},$$

or, equivalently,

$$S(t+\mathrm{\Delta }t)=S(t)\mathrm{exp}\left[A\mathrm{\Delta }t+\sigma ϵ\sqrt{\mathrm{\Delta }t}\right],$$
(8)
which is correct for any $`\mathrm{\Delta }t>0`$, even if finite. Given the spot price $`S_0`$, i.e. the price of the asset at time $`t=0`$, one can extract from a standardized normal distribution a value $`ϵ_k,k=1,\mathrm{},n`$ for the random variable $`ϵ`$ to simulate one possible path followed by the price by means of eq. (8):

$$S(k\mathrm{\Delta }t)=S((k1)\mathrm{\Delta }t)\mathrm{exp}\left[A\mathrm{\Delta }t+\sigma ϵ_k\sqrt{\mathrm{\Delta }t}\right].$$

Iterating the procedure $`m`$ times, one can simulate $`m`$ price paths $`\{(S_0,S_1^{(j)},S_2^{(j)},\mathrm{},S_n^{(j)}S_T^{(j)}):j=1,\mathrm{},m\}`$, to which apply the procedure exemplified in Section 2.1 and evaluate the price of the option. In such a MC simulation of the stochastic dynamics of asset price (Monte Carlo random walk) the mean values $`E[𝒪_i|S_{i1}],i=1,\mathrm{},n`$ can be simply obtained as

$$E[𝒪_i|S_{i1}]=\frac{𝒪_i^{(1)}+𝒪_i^{(2)}+\mathrm{}+𝒪_i^{(m)}}{m},$$

with no need to calculate transition probabilities because, through the extraction of the possible $`ϵ`$ values, the paths are automatically weighted according to the probability distribution function of eq. (5).
Unfortunately, this method leads to an estimated value whose numerical error is proportional to $`m^{1/2}`$. Thus, even if it is powerful because of the possibility to control the paths and to impose additional constrains (as it is usually required by exotic and path-dependent options), the MC random walk is extremely time consuming when precise predictions are required and appropriate variance reduction procedures have to be used to save CPU time .
This difficulty can be overcome by means of the method of the binomial trees and its extensions (see  and references therein), whose main idea stands in a deterministic choice of the possible paths to limit the number of intermediate points. At each time step the price $`S_i`$ is assumed to have only two choices: increase to the value $`uS_i,u>1`$ or decrease to $`dS_i,0<d<1`$, where the parameters $`u`$ and $`d`$ are given in terms of $`\sigma `$ and $`\mathrm{\Delta }t`$ in such a way to give the correct values for the mean and variance of stock price changes over the time interval $`\mathrm{\Delta }t`$. Also finite difference methods are known in the literature  as an alternative to time-consuming MC simulations. They provide the value of the derivative by solving the differential equation satisfied by the derivative, by converting it into a difference equation. Although tree approaches and finite difference methods are known to be faster than the MC random walk, they are difficult to apply when a detailed control of the history of the derivative is required and are also computationally time consuming when a number of stochastic variables is involved . It follows that the development of efficient and fast computational algorithms to price financial derivatives is still a key issue in financial analysis.

## 3 The path integral method

The path integral method is an integral formulation of the dynamics of a stochastic process. It is a suitable framework for the calculation of the transition probabilities associated to a given stochastic process, which is seen as the convolution of an infinite sequence of infinitesimal short-time steps .
For the problem of option pricing, the path integral method can be employed for the explicit calculation of the expectation values of the quantities of financial interest, given by integrals of the form

$$E[𝒪_i|S_{i1}]=𝑑z_ip(z_i|z_{i1})𝒪_i(e^{z_i}),$$
(9)
where $`z=\mathrm{ln}S`$ and $`p(z_i|z_{i1})`$ is the transition probability. $`E[𝒪_i|S_{i1}]`$ is the conditional expectation value of some functional $`𝒪_i`$ of the stochastic process. For example, for an European call option at the maturity $`T`$ the quantity of interest will be $`\mathrm{max}\{S_TX,0\}`$, $`X`$ being the strike price. As already emphasized, and discussed in the literature , the computational complexity associated to this calculation is generally great: in the case of exotic options, with path-dependent and early exercise features, integrals of the type (9) can not be analytically solved. As a consequence, we demand two things from a path integral framework: a very quick way to estimate the transition probability associated to a stochastic process (3) and a clever choice of the integration points with which evaluate the integrals (9). In particular, our aim is to develop an efficient calculation of the probability distribution without losing information on the path followed by the asset price during its time evolution.

### 3.1 Transition probability

The probability distribution function related to a SDE verifies the so-called Chapman-Kolmogorov equation , i.e. the relation

$$p(z^{\prime \prime }|z^{})=𝑑zp(z^{\prime \prime }|z)p(z|z^{}),$$
(10)
which states that the probability (density) of a transition from the value $`z^{}`$ (at time $`t^{}`$) to the value $`z^{\prime \prime }`$ (at time $`t^{\prime \prime }`$) is the “summation” over all the possible intermediate values $`z`$ of the probability of separate and consequent transitions $`z^{}z`$, $`zz^{\prime \prime }`$.
As a consequence, if we consider a finite time interval $`[t^{},t^{\prime \prime }]`$ and we apply a time slicing, by considering $`n+1`$ subintervals of length $`\mathrm{\Delta }t(t^{\prime \prime }t^{})/n+1`$, we can write, by iteration of eq. (10)

$$p(z^{\prime \prime }|z^{})=_{\mathrm{}}^+\mathrm{}\mathrm{}_{\mathrm{}}^+\mathrm{}𝑑z_1\mathrm{}𝑑z_np(z^{\prime \prime }|z_n)p(z_n|z_{n1})\mathrm{}p(z_1|z^{}),$$

which, thanks to eq.(4), can be written as

$$_{\mathrm{}}^+\mathrm{}\mathrm{}_{\mathrm{}}^+\mathrm{}𝑑z_1\mathrm{}𝑑z_n\frac{1}{\sqrt{(2\pi \sigma ^2\mathrm{\Delta }t)^{n+1}}}\mathrm{exp}\left\{\frac{1}{2\sigma ^2\mathrm{\Delta }t}\underset{k=1}{\overset{n+1}{}}\left[z_k(z_{k1}+A\mathrm{\Delta }t)\right]^2\right\}.$$
(11)
In the limit $`n\mathrm{}`$, $`\mathrm{\Delta }t0`$ such that $`(n+1)\mathrm{\Delta }t=(t^{\prime \prime }t^{})`$ (infinite sequence of infinitesimal time steps), the expression (11), as explicitly shown in Ref. , exhibits a Lagrangian structure and it is possible to express the transition probability in the path integral formalism as a convolution of the form

$$p(z^{\prime \prime },t^{\prime \prime }|z^{},t^{})=_𝒞𝒟[\sigma ^1\stackrel{~}{z}]\mathrm{exp}\left\{_t^{}^{t^{\prime \prime }}L(\stackrel{~}{z}(\tau ),\dot{\stackrel{~}{z}}(\tau );\tau )𝑑\tau \right\},$$

where $`L`$ is the Lagrangian

$$L(\stackrel{~}{z}(\tau ),\dot{\stackrel{~}{z}}(\tau );\tau )=\frac{1}{2\sigma ^2}\left[\dot{\stackrel{~}{z}}(\tau )A\right]^2,$$

and the integral is performed (with functional measure $`𝒟[]`$) over the paths $`\stackrel{~}{z}()`$ belonging to $`𝒞`$, i.e. all the continuous functions with constrains $`\stackrel{~}{z}(t^{})z^{}`$, $`\stackrel{~}{z}(t^{\prime \prime })z^{\prime \prime }`$. As carefully discussed in Ref. , a path integral is well defined only if both a continuous formal expression and a discretization rule are given. As done in many applications, the Itô prescription is adopted in the present work.
A first, naïve evaluation of the transition probability (11) can be performed via Monte Carlo simulation, by writing eq. (11) as

$$p(z^{\prime \prime },t^{\prime \prime }|z^{},t^{})=_{\mathrm{}}^+\mathrm{}\mathrm{}_{\mathrm{}}^+\mathrm{}\underset{i}{\overset{n}{}}dg_i\frac{1}{\sqrt{2\pi \sigma ^2\mathrm{\Delta }t}}\mathrm{exp}\left\{\frac{1}{2\sigma ^2\mathrm{\Delta }t}\left[z^{\prime \prime }(z_n+A\mathrm{\Delta }t)\right]^2\right\},$$
(12)
in terms of the variables $`g_i`$ defined by the relation

$$dg_k\frac{dz_k}{\sqrt{2\pi \sigma ^2\mathrm{\Delta }t}}\mathrm{exp}\left\{\frac{1}{2\sigma ^2\mathrm{\Delta }t}\left[z_k(z_{k1}+A\mathrm{\Delta }t)\right]^2\right\},$$
(13)
and extracting each $`g_i`$ from a gaussian distribution of mean $`z_{k1}+A\mathrm{\Delta }t`$ and variance $`\sigma ^2\mathrm{\Delta }t`$. However, as we will see, this method requires a large number of calls to obtain a good precision. This is due to the fact that each $`g_i`$ is related to the previous $`g_{i1}`$, so that this implementation of the path integral approach can be seen to be equivalent to a naïve MC simulation of random walks, with no variance reduction.

By means of appropriate manipulations  of the integrand entering eq. (11), it is possible, as shown in the following, to obtain a path integral expression which will contain a factorized integral with a constant kernel and a consequent variance reduction. We will refer to this second implementation of the method as path integral with importance sampling.
If we define $`z^{\prime \prime }z_{n+1}`$ and $`y_kz_kkA\mathrm{\Delta }t`$, $`k=1,\mathrm{},n`$, we can express the transition probability distribution as

$$_{\mathrm{}}^+\mathrm{}\mathrm{}_{\mathrm{}}^+\mathrm{}𝑑y_1\mathrm{}𝑑y_n\frac{1}{\sqrt{(2\pi \sigma ^2\mathrm{\Delta }t)^{n+1}}}\mathrm{exp}\left\{\frac{1}{2\sigma ^2\mathrm{\Delta }t}\underset{k=1}{\overset{n+1}{}}[y_ky_{k1}]^2\right\},$$
(14)
in order to get rid of the contribution of the drift parameter. Now let us extract from the argument of the exponential function a quadratic form

$$\underset{k=1}{\overset{n+1}{}}[y_ky_{k1}]^2=y_0^22y_1y_0+y_1^2+y_1^22y_1y_2+\mathrm{}+y_{n+1}^2=$$

$$=y^tMy+[y_0^22y_1y_0+y_{n+1}^22y_ny_{n+1}],$$
(15)
by introducing the $`n`$-dimensional array $`y`$ and the $`n\mathrm{x}n`$ matrix $`M`$ defined as

$$y=\left(\begin{array}{c}y_1\hfill \\ y_2\hfill \\ \mathrm{}\hfill \\ \mathrm{}\hfill \\ y_n\hfill \end{array}\right),M=\left(\begin{array}{cccccc}2\hfill & 1\hfill & 0\hfill & \mathrm{}\hfill & \mathrm{}\hfill & 0\hfill \\ 1\hfill & 2\hfill & 1\hfill & 0\hfill & \mathrm{}\hfill & 0\hfill \\ 0\hfill & 1\hfill & 2\hfill & 1\hfill & \mathrm{}\hfill & 0\hfill \\ 0\hfill & \mathrm{}\hfill & 1\hfill & 2\hfill & 1\hfill & 0\hfill \\ 0\hfill & \mathrm{}\hfill & \mathrm{}\hfill & 1\hfill & 2\hfill & 1\hfill \\ 0\hfill & \mathrm{}\hfill & \mathrm{}\hfill & \mathrm{}\hfill & 1\hfill & 2\hfill \end{array}\right),$$
(16)
where $`M`$ is a real, symmetric, non singular and tridiagonal matrix. In terms of the eigenvalues $`m_i`$ of the matrix $`M`$, the contribution in eq. (15) can be written as

$$y^tMy=w^tO^tMOw=w^tM_dw=\underset{i=1}{\overset{n}{}}m_iw_i^2,$$
(17)
by introducing the orthogonal matrix $`O`$ which diagonalizes $`M`$, with $`w_i=O_{ij}y_j`$. Because of the orthogonality of $`O`$, the Jacobian

$$J=\mathrm{det}\left|\frac{dw_i}{dy_k}\right|=\mathrm{det}|O_{ki}|,$$

of the transformation $`y_kw_k`$ equals 1, so that $`_{i=1}^ndw_i=_{i=1}^ndy_i`$. Thanks to eqs. (16)-(17), and after some algebra, eq. (15) can be written as

$$\underset{k=1}{\overset{n+1}{}}[y_ky_{k1}]^2=\underset{i=1}{\overset{n}{}}m_iw_i^2+y_0^22y_1y_0+y_{n+1}^22y_ny_{n+1}=$$

$$\underset{i=1}{\overset{n}{}}m_i\left[w_i\frac{(y_0O_{1i}+y_{n+1}O_{ni})}{m_i}\right]^2+y_0^2+y_{n+1}^2\underset{i=1}{\overset{n}{}}\frac{(y_0O_{1i}+y_{n+1}O_{ni})^2}{m_i}.$$
(18)
Now, if we introduce new variables $`h_i`$ obeying the relation

$$dh_i\sqrt{\frac{m_i}{2\pi \sigma ^2\mathrm{\Delta }t}}\mathrm{exp}\left\{\frac{m_i}{2\sigma ^2\mathrm{\Delta }t}\left[w_i\frac{(y_0O_{1i}+y_{n+1}O_{ni})}{m_i}\right]^2\right\}dw_i,$$
(19)
it is possible to express the finite-time probability distribution $`p(z^{\prime \prime }|z^{})`$ as

$$_{\mathrm{}}^+\mathrm{}\mathrm{}_{\mathrm{}}^+\mathrm{}\underset{i=1}{\overset{n}{}}dy_i\frac{1}{\sqrt{(2\pi \sigma ^2\mathrm{\Delta }t)^{n+1}}}\mathrm{exp}\left\{\frac{1}{2\sigma ^2\mathrm{\Delta }t}\underset{k=1}{\overset{n+1}{}}[y_ky_{k1}]^2\right\}=$$

$$=_{\mathrm{}}^+\mathrm{}\mathrm{}_{\mathrm{}}^+\mathrm{}\underset{i=1}{\overset{n}{}}dw_i\frac{1}{\sqrt{(2\pi \sigma ^2\mathrm{\Delta }t)^{n+1}}}e^{(y_0^2+y_{n+1}^2)/2\sigma ^2\mathrm{\Delta }t}$$

$$\mathrm{exp}\{\frac{1}{2\sigma ^2\mathrm{\Delta }t}\underset{i=1}{\overset{n}{}}[m_i(w_i\frac{(y_0O_{1i}+y_{n+1}O_{ni})}{m_i})^2\frac{(y_0O_{1i}+y_{n+1}O_{ni})^2}{m_i}]\}=$$

$$_{\mathrm{}}^+\mathrm{}\mathrm{}_{\mathrm{}}^+\mathrm{}\underset{i=1}{\overset{n}{}}dh_i\frac{1}{\sqrt{2\pi \sigma ^2\mathrm{\Delta }t\mathrm{det}(M)}}\mathrm{exp}\left\{\frac{1}{2\sigma ^2\mathrm{\Delta }t}\left[y_0^2+y_{n+1}^2+\underset{i=1}{\overset{n}{}}\frac{(y_0O_{1i}+y_{n+1}O_{ni})^2}{m_i}\right]\right\}.$$
(20)
Equation (20) is one of the main results of the present work. Actually, the probability distribution function, as given by eq. (20), is an integral whose kernel is a constant function (with respect to the integration variables) and which can be factorized into the $`n`$ integrals

$$_{\mathrm{}}^+\mathrm{}𝑑h_i\mathrm{exp}\left\{\frac{1}{2\sigma ^2\mathrm{\Delta }t}\frac{(y_0O_{1i}+y_{n+1}O_{ni})^2}{m_i}\right\},$$
(21)
given in terms of the $`h_i`$, which are gaussian variables that can be extracted from a normal distribution with mean $`(y_0O_{1i}+y_{n+1}O_{ni})^2/m_i`$ and variance $`\sigma ^2\mathrm{\Delta }t/m_i`$. Differently to the first, naïve implementation of the path integral, now each $`h_i`$ is no longer dependent on the previous $`h_{i1}`$, and importance sampling over the paths is automatically accounted for.
It is worth noticing that, by means of the extraction of the random variables $`h_i`$, we are creating price paths, since at each intermediate time $`t_i`$ the asset price is given by

$$S_i=\mathrm{exp}\{\underset{k=1}{\overset{n}{}}O_{ik}h_k+iA\mathrm{\Delta }t\}.$$
(22)
Therefore, the path integral algorithm can be easily adapted to the cases in which the derivative to be valued has, in the time interval $`[0,T]`$, additional constraints, as in the case of interesting path-dependent options, such as Asian and barrier options .
The results of the two realizations of the path integral method here discussed will be compared in Section 4.

### 3.2 Integration points

Thanks to the method illustrated in Section 3.1, a powerful and fast tool to compute the transition probability in the path integral framework is available and it can be employed if we need to value a generic option with maturity $`T`$ and with possibility of anticipated exercise at times $`t_i=i\mathrm{\Delta }t`$ ($`n\mathrm{\Delta }tT)`$. As a consequence of this time slicing, one must numerically evaluate $`n1`$ mean values of the type (9), in order to check at any time $`t_i`$, and for any value of the stock price, whether early exercise is more convenient with respect to holding the option for a future time. To keep under control the computational complexity and the time of execution, it is mandatory to limit as far as possible the number of points for the integral evaluation. This means that we would like to have a linear growth of the number of integration points with the time.
Let us suppose to evaluate each mean value

$$E[𝒪_i|S_{i1}]=𝑑z_ip(z_i|z_{i1})𝒪_i(e^{z_i}),$$

with $`p`$ integration points, i.e. considering only $`p`$ fixed values for $`z_i`$. To this end, we can create a grid of possible prices, according to the dynamics of the stochastic process as given by eq. (3)

$$z(t+\mathrm{\Delta }t)z(t)=\mathrm{ln}S(t+\mathrm{\Delta }t)\mathrm{ln}S(t)=A\mathrm{\Delta }t+ϵ\sigma \sqrt{\mathrm{\Delta }t}.$$
(23)
Starting from $`z_0`$, we thus evaluate the expectation value $`E[𝒪_1|S_0]`$ with $`p=2m+1,m`$ values of $`z_1`$ centered333Let us recall that between two possible exercise times the probability distribution function is gaussian and it is therefore symmetrical with respect to its mean value. on the mean value $`E[z_1]=z_0+A\mathrm{\Delta }t`$ and which differ from each other of a quantity of the order of $`\sigma \sqrt{\mathrm{\Delta }t}`$

$$z_1^jz_0+A\mathrm{\Delta }t+j\sigma \sqrt{\mathrm{\Delta }t},j=m,\mathrm{},+m.$$

Going on like this, we can evaluate each expectation value $`E[𝒪_2|z_1^j]`$ obtained from each one of the $`z_1`$’s created above with $`p`$ values for $`z_2`$ centered around the mean value

$$E[z_2|z_1^j]=z_1^j+A\mathrm{\Delta }t=z_0+2A\mathrm{\Delta }t+j\sigma \sqrt{\mathrm{\Delta }t}.$$

Iterating the procedure until the maturity, we create a deterministic grid of points such that, at a given time $`t_i`$, there are $`(p1)i+1`$ values of $`z_i`$, in agreement with the request of linear growth.
This procedure of selection of integration points, together with the calculation of the transition probability previously described, is the basis of our path integral simulation of the price of a generic option.

## 4 Numerical results and discussion

By applying the results derived in Section 3, we have at disposal an efficient path integral algorithm both for the calculation of transition probabilities and the evaluation of option prices. In the present section, the application of the method to European and American options in the BSM model is illustrated and comparisons with the results obtained with the standard procedures known in the literature are shown.

First, the path integral simulation of the probability distribution of the logarithm of the stock prices, $`p(lnS)`$, as a function of the logarithm of the stock price, for a BSM-like stochastic model, as given by eq. (2), is shown in Fig. 1. The parameters used in the simulation are: $`S_0=100`$, $`X=110`$, $`\mu =0.05`$, $`\sigma =0.1`$, $`t=0`$ year and $`T=1`$ year, with 100 time slices. As can be seen, the expected lognormal distribution of the stock prices is correctly reproduced by the path integral numerical simulation. The plot shows a comparison of the calculation of $`p(lnS)`$ as obtained by means of the two path integral algorithms described in Section 3.1. The markers correspond to the naïve path integral computation of the probability distribution, without variance reduction, for $`10^3`$ (upper plot) and $`10^4`$ (lower plot) MC iterations. The error bars indicate the $`1\sigma `$ statistical error of the MC calculation. The solid line is the prediction for $`p(lnS)`$ as obtained with the path integral simulation with importance sampling. In such a case, only two calls for each variables $`h_i`$ are needed to correctly fit a gaussian distribution, the numerical error being totally negligible and the algorithm very fast, with a typical execution time of a few seconds on a PentiumIII 500 Mhz PC. On the contrary, the first path integral implementation is much less accurate and CPU time consuming. This is a consequence of the fact that, in the path integral simulation with importance sampling, the presence of constant integration kernel squeezes to zero the standard estimation error. The diagonalization of the tridiagonal matrix $`M`$, which is a basic ingredient of the efficient path integral algorithm developed, is performed according to the standard numerical procedure described in Ref. , realized by means of the routine F02FAF of the NAG program library , while the generation of the gaussian variables $`h_i`$ follows from the routine RNORML of the CERN program library.

As previously emphasized, the knowledge of the asset price $`S_i`$ at each intermediate time $`t_i`$ through eq. (22) gives the possibility of applying the procedure of calculation of the transition probability illustrated in Section 3.1 also to those types of financial derivatives whose payoff depends on the price path of the underlying asset. For such exotic options, the fast computation of the transition probability is a basic ingredient of our path integral algorithm as an efficient alternative to time-consuming MC simulation.

Once the transition probability has been computed, the price of an option can be computed in a path integral approach as the conditional expectation value of a given functional of the stochastic process. For example, the price of an European call option will be given by

$$𝒞=e^{r(Tt)}_{\mathrm{}}^+\mathrm{}𝑑z_fp(z_f,T|z_i,t)\mathrm{max}[e^{z_f}X,0],$$
(24)
while for an European put it will be

$$𝒫=e^{r(Tt)}_{\mathrm{}}^+\mathrm{}𝑑z_fp(z_f,T|z_i,t)\mathrm{max}[Xe^{z_f},0],$$
(25)
where $`r`$ is the risk-free interest rate. Therefore just one-dimensional integrals need to be evaluated. They can be precisely computed with standard quadrature rules. In our calculation, the one-dimensional integrals are simply performed with a standard trapezoidal rule, cross-checked with the routine of adaptive integration D01EAF from the NAG library . A sample of the results obtained for an European put option in the BSM model is shown in Tab. 1. The predictions of our approach, indicated as path integral, are compared with results available in the literature, as quoted in Ref. . In Tab. 1, the entries correspond to the analytical results, the results by binomial trees, and the results of the Green Function Deterministic Numerical Method (GFNDM) developed in Ref. . As can be noticed, our results are in perfect agreement with the analytical predictions, while the differences with the other numerical procedures are within the 1% level. The errors in our numbers as due to numerical integration are not specified being well below the digits quoted.

Further numerical results of our path integral method are shown in Fig. 2, where the behaviour of the Greek letters  of an European call option in the BSM model is plotted as a function of the stock price. The solid lines correspond to the analytical predictions, while the markers are the results by our path integral approach. The model parameters used in the simulation are: $`X=10`$, $`r=0.1`$, $`\sigma =0.4`$, $`t=0`$ year and $`T=0.5`$ year. The four Greeks shown are important variables to manage the risk associated to an option and are defined as

$`\mathrm{\Delta }={\displaystyle \frac{𝒞}{S}},\mathrm{\Gamma }={\displaystyle \frac{^2𝒞}{S^2}},V=\mathrm{Vega}={\displaystyle \frac{𝒞}{\sigma }},\vartheta ={\displaystyle \frac{𝒞}{t}},`$
where $`𝒞`$ is the price of the European call option. They are computed through standard numerical differentiation of the numerical value $`𝒞`$ returned by the path integral, by means of the NAG routine D04AAF . Also for the Greeks, there is perfect agreement between the results obtained via our path integral simulation and the analytical predictions.

To test the reliability of the sampling over the integration points discussed in Section 3.2, we present results for the particular case of the price of an American option in the BSM model in Tab. 2, as obtained with the grid technique described in Section 3.2. Comparisons with independent results available in the literature are also shown. As can be seen from Tab. 2, there is generally a good agreement of our path integral results with those known in the literature  and obtained by means of the binomial tree, of the finite difference method and of the GFDNM method. It is worth noticing that our results in the path integral framework require only a few seconds on a PentiumIII 500MhZ PC.

## 5 The limit of continuum and American options

In the case of an American option, the possibility of exercise at any time up to the expiration date allows to develop, within the path integral formalism, a specific algorithm, which, as shown in the following, is precise and very quick.
Given the time slicing considered in Section 3.2, the case of American options requires the limit $`\mathrm{\Delta }t0`$ which, putting $`\sigma 0`$, leads to a delta-like transition probability

$$p(z,t+\mathrm{\Delta }t|z_t,t)\delta (zz_tA\mathrm{\Delta }t).$$

This means that, apart from volatility effects, the price $`z_i`$ at time $`t_i`$ will have a value remarkably close to the expected value $`\overline{z}z_{i1}+A\mathrm{\Delta }t`$, given by the drift growth. Needless to say, if we should substitute the expression $`p(z_i,i\mathrm{\Delta }t|z_{i1},(i1)\mathrm{\Delta }t)\delta (z_i\overline{z})`$ inside the integrals (9), we would neglect the role of the volatility and consider only a drift growth of the asset prices. In order to take care of the volatility effects, a possible solution is to estimate the integral of interest, i.e.

$$E[𝒪_i|S_{i1}]=_{\mathrm{}}^+\mathrm{}𝑑zp(z|z_{i1})𝒪_i(e^z),$$
(26)
by inserting in eq. (26) the analytical expression for the $`p(z|z_{i1})`$ transition probability

$$p(z|z_{i1})=\frac{1}{\sqrt{2\pi \mathrm{\Delta }t\sigma ^2}}\mathrm{exp}\left\{\frac{(zz_{i1}A\mathrm{\Delta }t)^2}{2\sigma ^2\mathrm{\Delta }t}\right\}=$$

$$\frac{1}{\sqrt{2\pi \mathrm{\Delta }t\sigma ^2}}\mathrm{exp}\left\{\frac{(z\overline{z})^2}{2\sigma ^2\mathrm{\Delta }t}\right\},$$

together with a Taylor expansion of the kernel function $`𝒪_i(e^z)f(z)`$ around the expected value $`\overline{z}`$. Hence, up to the second order in $`z\overline{z}`$, the kernel function becomes

$$f(z)=f(\overline{z})+(z\overline{z})f^{}(\overline{z})+\frac{1}{2}f^{\prime \prime }(\overline{z})(z\overline{z})^2+O((z\overline{z})^3),$$
(27)
which, together with eq. (5), yields

$$E[𝒪_i|S_{i1}]=f(\overline{z})+\frac{\sigma ^2}{2}f^{\prime \prime }(\overline{z}),+\mathrm{},$$
(28)
since the first derivative does not give contribution to eq. (26), being the integral of an odd function over the whole $`z`$ range. The second derivative can be numerically estimated as

$$f^{\prime \prime }(\overline{z})=\frac{1}{\delta _\sigma ^2}[f(\overline{z}+\delta _\sigma )2f(\overline{z})+f(\overline{z}\delta _\sigma )],$$
(29)
with $`\delta _\sigma =O(\sigma \sqrt{\mathrm{\Delta }t})`$, as dictated by the dynamics of the stochastic process.

It is worth noticing that each expectation value $`E[𝒪_i|S_{i1}]`$ can be now computed once $`f(\overline{z})=𝒪_i(e^{z_{i1}+A\mathrm{\Delta }t})`$ and $`f(\overline{z}\pm \delta _\sigma )=𝒪_i(e^{z_{i1}+A\mathrm{\Delta }t\pm \delta _\sigma })`$ are known. Consequently, if we employ the deterministic grid illustrated in Section 3.2, it is enough to put $`p=3`$ to obtain reliable results, provided $`\mathrm{\Delta }t`$ is taken sufficiently small. Actually, the results obtained with this simple semi-analytical procedure are shown in Tab. 3, using $`\delta _\sigma =2\sigma \sqrt{\mathrm{\Delta }t}`$ for numerical differentiation and 300 time slices. For such path integral evaluation of an American option the CPU time is negligible. The results are in nice agreement with those of other numerical procedures and in perfect agreement, as we explicitly checked for different model parameters, with those quoted in Tab. 2 as obtained with the path integral algorithm discussed in Section 3.2.

## 6 Concluding remarks and outlook

In this paper we have shown that the path integral approach to stochastic processes can be successfully applied to the problem of option pricing in financial analysis. In particular, an efficient implementation of the path integral method has been presented, in order to obtain fast and accurate predictions for a large class of financial derivatives, including those with path-dependent and early exercise features. The key points of the algorithm are a careful evaluation of the transition probability associated to the stochastic model for the time evolution of the asset prices and a suitable choice of the integration points needed to evaluate the quantities of financial interest. Furthermore, a simple and very fast procedure to value American options has been derived, by exploiting the possibility of continuous exercise up to the expiration date.

The results of the path integral algorithm have been carefully compared with those available in the literature for European and American options in the BSM model and found to be in good agreement with the standard numerical procedures used in finance. The computational time of the algorithm developed is, to the best of our knowledge, competitive with the most efficient strategies used in finance. The method is general and it can be quite easily extended to cope with other financial derivatives (with path-dependent features) and other models beyond the dynamics of geometric Brownian motion.

The natural developments of the path integral algorithm here presented concern the application of the method to value other kinds of quantities of financial interest, for which the analytical solution is not available or not accessible, and the extension of the method of option pricing to more realistic model of the financial dynamics, such as models with stochastic volatility  or beyond the BSM Gaussian limit , in order to search for a better agreement with the real prices as observed in the real market. A further interesting perspective would be using the path integral algorithm as a benchmark to train neural networks.

Such developments are by now under consideration.

Acknowledgments
We acknowledge collaboration of F. Piccinini at the early stage of this work. We wish to thank M. Cersich, E. Melchioni and A. Pallavicini of FMR Consulting for useful discussions. We are also grateful to FMR Consulting for having provided the software for the analytical predictions of the price and Greeks of European options.


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# Chandra view of the dynamically young cluster of galaxies A1367 II. point sources

## 1 Introduction

Galaxies can generally be divided into field galaxies and those in groups or clusters. Both types are known as X-ray emitters from at least the Einstein era (Marshall et al. 1978). A comparison of the X-ray emission of galaxies in different type of clusters, and a comparison with field galaxies, can tell us the effect of environment on the evolution of galaxies and can further provide some insights into the evolution of clusters. To achieve that, we need to study the X-ray emission of galaxies in different types of clusters. However, limited by the X-ray instruments little work has been done in this field for clusters more distant than the Virgo cluster (e.g., Dow & White 1995; Sakelliou & Merrifield 1998). In this paper, we present the X-ray analysis of the point sources detected in a 40 ks Chandra observation of A1367, with special emphasis on the sources associated with member galaxies. Three extended sources associated with member galaxies are discussed in paper I.

A1367 is a nearby irregular cluster (z=0.022) with many substructures in X-rays (Bechtold et al. 1983, B83 hereafter; Grebenev et al. 1995, G95 hereafter; Lazzati et al. 1998, L98 hereafter; paper I). A complete flux limited sample of X-ray sources associated with the cluster is important in understanding the effects of environment on galaxy properties and evolution. Previous analyses based on Einstein HRI (EHRI hereafter) and ROSAT PSPC (B83; G95; L98) found 47 point sources in total, associated with member galaxies or not. However, the results from these analyses have been inconsistent, especially in the overlap of detected sources. The inconsistencies are most likely due to the relatively poor quality of the EHRI data, or the low angular resolution of the PSPC data.

Now with Chandra’s superior spatial resolution, wider energy coverage, better spectral resolution and sensitivity than EHRI and PSPC, we not only can detect more point sources in the field, but also study the spectra of bright ones. Chandra data reduction is described in $`\mathrm{\S }`$2. A summary of the point sources detected is in $`\mathrm{\S }`$3. In $`\mathrm{\S }`$4 the properties of detected cluster member galaxies are discussed. Other interesting point sources are described in $`\mathrm{\S }`$5. $`\mathrm{\S }`$6 discusses the source excess observed in the central field. Throughout this paper, we assume h=0.5 (H0 = 100h km s-1 Mpc-1) and q0 = 0.5. These cosmological parameters correspond to the linear scale of 0.62 kpc/arcsec at the cluster redshift. All luminosities scale as h$`{}_{}{}^{2}{}_{0.5}{}^{}`$.

## 2 Chandra observations & data reduction

A1367 was observed on February 26, 2000 by Chandra with the Advanced CCD Imaging Spectrometer (ACIS). The observation was taken by the ACIS-S instrument. This observation contains three particle background flares that were excluded based on the X-ray light curves from the outer parts of the field. After excluding the period of background flares, the effective exposures are 37.8 ks for the S1 and S3 chips, 37.4 ks for the S2 and S4 chips, and 39.0 ks for the I2 and I3 chips. The procedure of the data reduction has been mentioned in paper I. Here we will only state those specific of the purpose of this paper. CIAO WAVDETECT was used to detect point sources. Absolute positions of X-ray sources were carefully checked using optical identifications. A small boresight error of $``$ 2′′ in the original data was corrected. The derived positions are accurate to $``$ 0.5′′ near the aimpoint, with larger errors further out. In this work, all the background used is the local background. CIAO(2.1), FTOOLS(5.0) and XSPEC(11.0) were used for the data reduction.

The calibration data used correspond to CALDB 2.9 from Chandra X-ray Center (CXC). The errors in this paper are 90% confidence interval. The properties of member galaxies are from the NASA Extragalactic Database (NED). A Galactic absorption of 2.2$`\times `$1020 cm-2 was used in the spectral fitting unless otherwise specified.

## 3 Summary of the point sources

Fig. 1 shows the photon image of this observation. The field of view (FOV) of this observation is shown in Fig. 2 of paper I. We ran CIAO WAVDETECT on different scales to detect point sources. The probability of erroneously associating a background fluctuation in a pixel with a detection was set at 10-6, which produces less than 1 false detections per 4 chips field (Freeman et al. 2002). To maximize signal to noise ratio, only data in the 0.5 - 7 keV band were used. MKPSF in CIAO was used to check the point-like nature of the detected sources. Since the sizes of PSFs depend on energy, for bright sources ($`>`$ 50 counts) we fit their spectra and considered the effect of energy on the PSF sizes for them. In total, 59 point sources in the field were detected. Eight of them are known member galaxies (Table 1). All point sources are shown in Fig. 2 and their properties are presented in Table 2 (except the ones corresponding to the known member galaxies and QSOs, which are discussed in $`\mathrm{\S }`$4 and $`\mathrm{\S }`$5.1 respectively). The aperture photometry method (e.g., Giacconi et al. 2001) was applied to obtain the count rates of these point sources in the soft (0.5 - 2 keV) and hard (2 - 7 keV) band respectively. The radius of the aperture is chosen to be the 90% encircled energy average radius (EEAR) of the local PSF. The correction on the exposure map (including vignetting) has been applied. Thus, we can convert the count rates to fluxes just based on the response files at the aimpoint. Assuming a power law with a photon index of 1.7 (1.5 - 2.0) and a Galactic absorption, the minimum detectable fluxes are $``$ 1.4 (1.4) $`\times `$10-15 ergs cm-2 s-1 in the 0.5 - 2 keV band and 0.8 (1.1 - 0.5) $`\times `$ 10-14 ergs cm-2 s-1 in the 2 - 10 keV band (we measured 2 - 7 keV count rates and converted them to 2 - 10 keV fluxes). At the distance of A1367 (z=0.022), these fluxes correspond to 2.9 (2.9) $`\times `$1039 ergs s-1 (0.5 - 2 keV) and 1.7 (2.3 - 1.1) $`\times `$ 1040 ergs s-1 (2 - 10 keV). Although the ACIS field is full of the cluster emission, A1367 is a relatively low X-ray-surface-brightness cluster so that the effect on point source detection is small (at most raise the detection limits by $``$ 40% around cluster center).

Forty-five of these fifty-nine sources are new. There are 8 known member galaxies and 3 known QSOs. Of the 48 remaining sources, 21 have optical counterparts in DSS II, 2 have radio counterparts in Gavazzi & Contursi (1994; GC94 hereafter), and 25 sources have no counterparts in either DSS II or GC94.

We also checked the point sources detected by previous EHRI and PSPC observations (B83, G95 and L98). The sensitivity of this Chandra observation should allow us to detect all of them if they are real and not highly variable. The results are presented in Table 3. For 27 previously detected point sources in the ACIS FOV (of 47 in total), only 14 are confirmed. Almost all sources not confirmed by Chandra are EHRI sources. Moreover, all these EHRI sources without Chandra detection were also not detected by the ROSAT PSPC. This fact is very similar to what we found for extended sources claimed by previous observations (paper I). These EHRI point sources were generally detected at $``$ 3 $`\sigma `$ levels (G95). However, as we mentioned in paper I, the EHRI observations of A1367 may not be well calibrated so that some background fluctuations were regarded as sources.

## 4 Point Sources associated with known member galaxies

Eight of fifty-nine point sources are associated with member galaxies (Table 1). In total, 10 member galaxies are detected in this observation. NGC 3860 has a point component and an extended one, while UGC 6697 and NGC 3860B are both extended in X-rays (paper I). Five sources are located over 10 from the aimpoint, thus any structure on scales $`<`$$``$ 10′′ is smeared out by the degraded PSFs at large off-axis angles. For the galaxies not detected, this observation puts 3 $`\sigma `$ upper limits of 0.3 - 4.7$`\times `$1040 ergs s-1 (0.5 - 2 keV) for the point-like emission from them (Table 1). In the following, we discuss the eight point-like sources associated with known member galaxies respectively.

### 4.1 E and S0 galaxies

1) NGC 3862 (3C 264)

It is a bright radio source (3C 264) with a clear jet-like structure (Bridle & Vallée, 1981). Its optical spectrum is that of a normal elliptical galaxy with only one very weak emission line \[N II\] and no detectable Balmer emission (Elvis et al. 1981). Elvis et al. (1981) suggested that its nucleus was similar to a low-luminosity BL Lac object based on its strong nuclear X-ray emission revealed by Einstein and basically featureless optical spectrum. Crane et al. (1993) discovered a sub-arcsec optical synchrotron jet by HST.

In this observation, the galaxy is in the S4 chip and unresolved (the 50% EEAR of PSF there is $``$ 8′′). About 9000 counts were collected. The 0.7 - 9 keV spectrum is featureless and well fit by a power law with photon index of 2.44$`\pm `$0.05 modified by the Galactic absorption ($`\chi ^2`$ = 126.4/124; Fig. 3). A thermal plasma model (e.g., MEKAL) fits it poorly. A broken power law or any additional thermal component besides the power law does not significantly improve the fit. The unabsorbed X-ray luminosity (0.5 - 10 keV) is 4.1$`\times `$1042 ergs s-1. The contribution from LMXB is at most 4% scaling from the LMXB X-ray-to-optical ratios in Sarazin, Irwin & Bregman (2001; S01 hereafter). The source appears constant in intensity. The 2 - 10 keV luminosity 1.5$`\times `$1042 ergs s-1 is typical for Radio galaxies (Sambruna, Eracleous & Mushotzky 1999). The 2 - 10 keV spectra of AGNs (including Seyferts, QSOs and Radio galaxies) are rather homogeneously represented by a power law with photon index of 1.7 - 2.0 (e.g., Nandra & Pounds 1994; Sambruna et al. 1999). However, for NGC 3862, even if only 2 - 9 keV spectrum is fitted, the photon index is large at 2.72$`{}_{0.18}{}^{}{}_{}{}^{+0.19}`$ ($`\chi ^2`$ = 28.4/41). The spectrum of NGC 3862 is similar to the steep spectra found in BL Lac objects (photon index $``$ 2.5; e.g., Ciliegi, Bassani & Caroli 1995; Kubo et al. 1998).

2) NGC 3842

In optical this is the brightest galaxy in the field and also the cD galaxy of a galaxy concentration around it. In this observation, it is 13.9 off-axis in the S1 chip. The position of the X-ray source agrees with the optical nucleus. About 900 net counts were collected in this observation. No significant variations in its lightcurve were detected. Its spectrum cannot be described well by one component, either a power law or a MEKAL. At least two components, a soft and a hard, are needed (Fig. 4). The soft component can be well described by a MEKAL model (the abundance is fixed to 0.5 solar), while a power law and a thermal Bremsstrahlung both can fit the hard component well ($`\chi ^2`$ are $``$ 15.7/19). If a Bremsstrahlung is adopted for the hard component, the best-fit temperature of the soft component is 0.70$`{}_{0.05}{}^{}{}_{}{}^{+0.08}`$ keV and the temperature of the hard component is 2.9$`{}_{1.3}{}^{}{}_{}{}^{+3.9}`$ keV. If a power law is adopted, the temperature of the soft component is 0.73$`\pm `$0.07 keV while the photon index of the hard component is 2.1$`{}_{0.4}{}^{}{}_{}{}^{+0.7}`$. In each case, the total luminosity in the 0.5 - 10 keV band is 1.9$`\times `$1041ergs s-1, while the luminosity of the soft component is about same - 9$`\times `$1040 ergs s-1 (0.5 - 10 keV). The luminosity ratio of the hard X-ray component to the optical Lhard (0.3 - 10 keV) / LB is 6.8$`\times `$1029 ergs s-1 L$`{}_{B}{}^{}{}_{}{}^{1}`$, which is quite similar to the values presented in S01 — 8.1, 7.2$`\times `$1029 ergs s-1 L$`{}_{B}{}^{}{}_{}{}^{1}`$ for NGC 4697 (E) and NGC 1553 (S0) respectively. This suggests the hard component may be dominated by X-ray binaries. The soft component is naturally explained as the thermal halo of NGC 3842. The upper limit of the halo size is $``$ 12′′ in radius.

3) NGC 3837

In this observation, it is 12.4 off-axis (the 50% EEAR of PSF is $``$ 13′′ there) in the S1 chip and unresolved. About 400 counts from it were collected. No significant variations in its Chandra lightcurve were found. Its X-ray spectrum clearly shows at least two components: a soft one and a hard one dominant above 2-3 keV (Fig. 4). A MEKAL model is used to represent the soft component, which may be a thermal halo. The hard component has a rather flat spectrum. One possibility of the hard component is the combination of X-ray binaries. To follow S01, we used a 8 keV thermal Bremsstrahlung to represent the hard component. The abundance in the MEKAL model for the soft component is fixed to 0.5 solar. The fitting result is acceptable with $`\chi ^2`$ of 14.4/13. The temperature of the soft component is 0.60$`{}_{0.12}{}^{}{}_{}{}^{+0.07}`$ keV, which is not sensitive to the assumed model for the hard component. The derived Lx (0.5 - 10 keV) is 4.4$`\times `$1040 ergs s-1 for the soft component and 4.8$`\times `$1040 ergs s-1 for the hard one. The luminosity ratio of the hard component and the optical Lx (0.3 - 10 keV)/LB is 1.2$`\times `$1030 ergs s-1 L$`{}_{B}{}^{}{}_{}{}^{1}`$, consistent with the results in S01. If we change the assumed temperature of the hard component to 5 - 10 keV, the results do not change much.

4) CGCG 097-109

This is the first X-ray detection of this source, while the previously claimed detections Be5 (B83), Gp11\* and Ge14 (G95) are actually the nearby bright point source 15 (Fig. 2). In this observation, it is a point-like source and the position agrees with the optical nucleus of the galaxy within 0.5′′. The superior spatial resolution of Chandra puts an upper limit $``$ 0.5h$`{}_{0.5}{}^{}{}_{}{}^{1}`$ kpc to the size of the X-ray emitting source. Though only $``$ 50 counts were collected, a spectral fit is performed. A power law model with photon index 2.3$`{}_{0.7}{}^{}{}_{}{}^{+1.2}`$ modified by the Galactic absorption gives satisfied results while the thermal plasma models (e.g., MEKAL) fit the data poorly. The derived Lx is 1.5$`\times `$1040 ergs s-1 (0.5 - 10 keV) and 6$`\times `$1039 ergs s-1 (2 - 10 keV). The scaled X-ray luminosity of the LMXB component is 1.9-2.1$`\times `$1040 ergs s-1 (0.3 - 10 keV) based on the results in S01, which is comparable to the value we found. However, the LMXB component should follow the optical light of the galaxy, which has a size of $``$ 20′′. The source found is point-like with an upper limit of only $``$ 1′′. Thus, this X-ray source is more likely the LLAGN of CGCG 097-109. The possibility of an ULX source is low since ULXs usually occur in regions of star formation (e.g., Fabbiano, Zezas & Murray 2001). The LMXB component is most likely swamped into the surrounding ICM emission. Assuming a typical spectrum (8 keV Bremsstrahlung) for the LMXB component in CGCG 097-109, the 3 $`\sigma `$ upper limit on the luminosity of an extended source (in 20′′ radius - the optical size) surrounding the nucleus is 2.7$`\times `$1040 ergs s-1 (0.3 - 10 keV), which is above the luminosity that is expected from LMXBs in this galaxy.

5) CGCG 097-113

This is the first X-ray detection of this source. Only $``$ 18 counts are collected from this source and the upper limit on the size of the X-ray emitter is $``$ 2′′. The position agrees with the optical nucleus of the galaxy within 1′′. Its 0.5 - 10 keV luminosity is estimated to be 4 - 9 $`\times `$1039 ergs s-1 assuming a photon index of 1.7 - 2.5. The scaled X-ray luminosity of the LMXB component is 1.1-1.2$`\times `$1040 ergs s-1 (0.3 - 10 keV) based on the results in S01. However, the optical size of the galaxy ($``$ 15′′) is much larger than the size of the X-ray emitter. Thus, the observed X-ray source is more likely a LLAGN, while the possibility of an ULX source is low as we mentioned above for CGCG 097-109. Assuming a typical spectrum (8 keV Bremsstrahlung) for the LMXB component in CGCG 097-113, the 3 $`\sigma `$ upper limit on the luminosity of an extended source (in 15′′ radius - the optical size) surrounding the nucleus is 1.9$`\times `$1040 ergs s-1 (0.3 - 10 keV), which is above the luminosity that is expected from LMXBs in this galaxy.

### 4.2 Spiral galaxies

6) NGC 3861

In optical NGC 3861 has a bright nucleus (Fig. 2). It was classified as one of the three “red galaxies” by Schommer & Bothun (1983) based on the optical colors. These kinds of galaxies were considered to have non-continuing star formation activity. In this observation, it is $``$ 14.1 off-axis in I2 chip (the 50% EEAR of PSF is $``$ 14′′ there) and remains unresolved. About 300 counts from it were collected in the observation. No significant variations were detected in its lightcurve. It has a very hard X-ray spectrum that is very flat in the 1 - 10 keV (a power law fit yields a photon index of 0.27$`{}_{0.23}{}^{}{}_{}{}^{+0.25}`$). The region around NGC 3861 was detected as a hot spot in the ASCA temperature map of A1367 (private communication with E. Churazov). A spectrum with a shape so flat cannot be fitted well with spectra of X-ray binaries (usually $``$ 8 keV Bremsstrahlung model). Moreover, the expected 0.3 - 10 keV luminosity of the X-ray binaries in NGC 3861 is 5.2$`\times `$1040 ergs s-1, simply scaled by the X-ray-to-optical luminosity ratio derived for the bulge of M31. This value is only $``$ 10% of the observed luminosity of NGC 3861.

The spectrum of NGC 3861 can be fitted well if we contribute the hard X-ray emission to an absorbed nucleus. We used a power law to fit the hard component and a 8 keV Bremsstrahlung (following S01) to fit the soft component. Besides the Galactic absorption, we set an intrinsic absorption for the hard component. It is found that if the intrinsic absorption is around 6 (4 - 9) $`\times `$1022 cm-2, the fit is good ($`\chi ^2`$ 22/18) and the photon index is $``$ 1.7, which is typical for AGN. The photon index is 1.7$`{}_{0.6}{}^{}{}_{}{}^{+0.5}`$ if the absorption is fixed at 6$`\times `$1022 cm-2. The spectrum of NGC 3861 and this best-fit model are shown in Fig. 5. The 2 - 10 keV luminosity of the hard component is $``$ 3$`\times `$1041 ergs s-1. This amount of luminosity and absorption, imply that NGC 3861 is a low luminosity Seyfert II galaxy. The 0.3 - 10 keV luminosity of the soft component is 5.3$`\times `$1040 ergs s-1, consistent with the scaling value from its optical luminosity (5.2$`\times `$1040 ergs s-1). The optical spectrum of the nucleus was obtained with the 60-inch telescope in Mt. Hopkins (private communication with P. Berlind and K. Rines). It shows some activity but not strong, with moderate \[N II\] lines but no H$`\alpha `$ line.

7) NGC 3861B

In this observation, only $``$ 70 counts were collected. We simply used a thermal Bremsstrahlung with a temperature fixed at 8 keV (following S01) to fit the spectrum because of the limited statistics. The fit is acceptable and the derived Lx is $``$ 5$`\times `$1040 ergs s-1 (0.3 - 10 keV), which is $``$ 4 times the scaled value from its optical luminosity (based on X-ray-to-optical luminosity ratio of the bulge of M31). This might imply that there is another X-ray emission component besides the binary one. Nevertheless, the statistics of the data do not allow us to explore it further. If a power law is used to fit its spectrum, the photon index is 2.6$`{}_{1.0}{}^{}{}_{}{}^{+1.6}`$ and the derived Lx is 5$`\times `$1040 ergs s-1 (0.3 - 10 keV).

8) NGC 3860

This Chandra observation clearly reveals two X-ray components in NGC 3860, a bright central point source and a diffuse extension. The latter has been discussed in paper I. It may be the thermal halo of NGC 3860 with a temperature of $``$ 0.7 keV. The position of the bright X-ray point-like source agrees with the optical nucleus of NGC 3860. The upper limit of the size is $``$ 1.0h$`{}_{}{}^{1}{}_{0.5}{}^{}`$ kpc. About 350 counts from it were collected. Its spectrum can be fitted well by a power law with $`\mathrm{\Gamma }`$=1.44$`{}_{0.18}{}^{}{}_{}{}^{+0.19}`$ ($`\chi ^2`$ = 6.2/13). The derived Lx is 1.4$`\times `$1041 ergs s-1 in the 0.5 - 10 keV band (1.0$`\times `$1041 ergs s-1 in the 2 - 10 keV band). No significant variations in its lightcurve were found. The weak H$`\alpha `$ emission observed by Kennicutt, Bothun & Schommer (1984) rules out the possibility of a starburst nucleus. Thus, it is most likely a LLAGN (e.g., Ho 1999). There is a correlation between LX and Lα for powerful Seyfert 1 nuclei, quasars and some type of LLAGNs (e.g., Ho et. 2001). The nucleus of NGC 3860 also falls on that line (Fig. 2 in Ho et al. 2001), which strengthens our conclusion above.

## 5 Other point sources

### 5.1 QSOs

There are three known QSOs (source 11 - 13 in Fig. 2) in the point sources detected. Their properties, including the best fits of their spectra, are listed in Table 4. Their spectra can all be fitted well by a power law modified with the Galactic absorption. Among them, the X-ray emission from the z=2.205 QSO Arp & Gavazzi, 1984) is first reported. The first one (source 11 or EXO 1141.3+2013) is the second brightest X-ray source after 3C 264 in the field. There is an emission line around 4.8 keV in its spectrum (Fig. 6). An inclusion of a gaussian for this line reduces $`\chi ^2`$ significantly (at a confidence level of $`>`$$``$ 99%; $`\mathrm{\Delta }\chi ^2`$ = 9.6 for two additional free parameters). The best-fit of line centroid is 4.87$`{}_{0.03}{}^{}{}_{}{}^{+0.07}`$ keV. If the optical redshift 0.335 is adopted, the emitting wavelength in the rest frame would be 6.50$`{}_{0.05}{}^{}{}_{}{}^{+0.09}`$ keV, consistent well with iron K$`\alpha `$ fluorescence line. The equivalent width of this line is 0.8$`{}_{0.4}{}^{}{}_{}{}^{+0.5}`$ keV. We checked the Chandra lightcurves of all three QSOs and found no significant variations.

The first two (source 11 and 12) may be radio-quiet QSOs since they have not yet been detected in radio. Moreover, the rather steep X-ray spectra of them ($`\mathrm{\Gamma }>`$ 2.1 in 90% confidence levels) are more consistent with the spectra of radio-quiet QSOs (Reeves & Turner 2000). The third one was detected in radio and has a flat radio spectrum (Arp & Gavazzi, 1984). The X-ray spectra of all of them show no intrinsic absorption, which implies that they are not type II QSOs.

### 5.2 Others

As we mentioned earlier, most of the bright point sources have optical counterparts in DSS II blue image. We also did spectral analysis for the point sources with enough counts ($`>`$ 50 counts). The spectra of 19 bright sources were fitted and the results are listed in Table 2. Most of them have spectra with photon indices around 1.7 - 2.0. Thus, they may be AGNs. We also checked the variability of bright sources ($`>`$ 50 counts). A Kolmogorov-Smirnov (K-S) test was used. This test is best for the sources with secular increase or decrease or sudden turn-on or off in the flux, but not good at detecting short-term variations. None of 28 eligible sources ($`>`$ 30 counts) are found to have significant variations. From Table 2, we can find that at least 8 sources (24, 32, 48-50, 59-61) have intrinsic absorption. The estimated column densities are from 1022 to at least 1023 cm-2.

## 6 Log N - Log S relation in the field

Cappi et al. (2001) found source excesses at levels of $``$ 2 $`\sigma `$ around two z$``$0.5 galaxy clusters 3C 295 and RXJ 003033.2+261819. We did a similar analysis for the central field of A1367. We chose the central 8.3 square field centered at the aimpoint (a chip size, see Fig. 2), where the sensitivity is the highest, to examine the Log N - Log S relation in the soft band (0.5 - 2 keV) and hard band (2 - 10 keV). The point sources with known origins (associated with member galaxies here) were excluded in computing the Log N - Log S. A power law model ($`\mathrm{\Gamma }`$=1.7) with the Galactic absorption is assumed for the sources. The conversion factors are 3.1$`\times `$10-15 ergs cm-2 s-1 for 1 c/ks in the 0.5 - 2 keV, and 2.4$`\times `$10-14 ergs cm-2 s-1 for 1 c/ks in the 2 - 10 keV. The results are shown in Fig. 7. The source numbers observed are over 2 times that predicted by the Log N - Log S relations found in the deep fields in both soft and hard bands (Hasinger et al. 1998; Mushotzky et al. 2000; Giacconi et al. 2001; Tozzi et al. 2001; Brandt et al. 2001). The K-S tests show that the observed Log N - Log S relations and any known ones from deep surveys are quite different ($`>`$ 0.95). In the soft band, when we move the observed Log N - Log S relations from the deep surveys up to $``$ 2.5 $`\sigma `$ levels, they begin to be consistent with the observed one. The largest difference is at flux larger than 2$`\times `$10-15 ergs cm-2 s-1. We observe 20 sources with fluxes larger than that value, while the Log N - Log S relations from the deep surveys predict 7 - 10 sources. Thus, in the soft band, there is a source excess at a level of $``$ 2.5 $`\sigma `$. Similarly in the hard band, we detect 16 sources with flux larger than 8$`\times `$10-15 ergs cm-2, while the Log N - Log S relations from the deep surveys predict $``$ 6 sources. Thus, in the hard band, there is also a source excess at a level of $``$ 2.5 $`\sigma `$.

The source excess observed in A1367 seems similar to what Cappi et al. (2001) found. However, in the case of A1367, since it is much closer than the two z$``$0.5 clusters, any galaxies with B less than $``$ 20m should be clearly revealed in DSS II blue image. Thus, if the excess sources are related to A1367, then they must be very optically faint (Log(LB/L) $`<`$$``$ 8.5). In the sources used to derive the soft band Log N - Log S relation in the central field, the faintest and the brightest sources have X-ray luminosities of 3$`\times `$1039 ergs s-1 (0.5 - 2 keV) and 2.5$`\times `$1041 ergs s-1 (0.5 - 10 keV) respectively if they are physically located in A1367. For the brightest nine sources in the central field, we have fitted their spectra simply by power law models. The derived photon indices are generally consistent with those of AGN ($``$ 1.7; Table 2). Thus, if the excess is due to the sources in A1367, they have to be LLAGNs with low optical luminosities (Log(LB/L) $`<`$$``$ 8.5) or even ULXs. Optical identification of all the sources seen in the A1367 field is needed to resolve the difference between the expected excess and that observed.

## 7 Conclusion

We have reported results from the most complete flux limited sample of X-ray sources in this part of A1367. Ten of twenty-five known member galaxies (Log(LB/L) $`>`$$``$ 9.5) in the Chandra field were detected. Thermal halo, X-ray binary and nuclear components are all observed in their spectra. Eight of ten galaxies are point-like sources in this observation and are discussed in the paper.

The radio galaxy 3C 264 (NGC 3862) is found to have a BL Lac-like X-ray spectrum ($`\mathrm{\Gamma }`$=2.44$`\pm `$0.05 in the 0.7 - 9 keV; $`\mathrm{\Gamma }`$=2.72$`{}_{0.18}{}^{}{}_{}{}^{+0.19}`$ in the 2 - 9 keV). This observation further discovered 2 new AGN/LLAGN (NGC 3861 — absorbed and NGC 3860) and 2 candidates of AGN/LLAGN (CGCG 097-109 and CGCG 097-113), showing that the X-ray observation serves as a powerful way to detect AGN, especially LLAGNs since they usually have weak optical emission lines. It is known that AGNs are rare in the nearby (z $`<`$ 0.1) cluster of galaxies ($``$ 1% by Dressler, Thompson & Shectman 1985; may be less by Way, Flores & Quintana 1998). There are 25 known member galaxies in the Chandra field (from NED). Thus, the observed percentage of AGN/LLAGN in this Chandra field ($`>`$$``$ 12%) is much higher than that found by Dressler et al. (1985). However, the limited statistics here make any further discussion impossible at this time.

For early type galaxies, the X-ray luminosities of thermal halos are correlated with the optical luminosities LB, though dispersion is large (e.g., Canizares, Fabbiano & Trinchieri 1987; Brown & Bregman 1998). Two early type galaxies (NGC 3842 and NGC 3837) were discovered to have soft thermal components, which are explained as thermal halos. They follow the predicted LX \- LB correlation (e.g., Brown & Bregman 1998). Moreover, we estimated the upper limits of X-ray luminosities of those early type galaxies without detection in the field (Table 1). The derived upper limits are also consistent with the known LX \- LB correlation. The discovery of the thermal halos in elliptical galaxies NGC 3842 and NGC 3837 (T $``$ 0.5 - 0.8 keV), in combination with the discovery of an extended feature associated with NGC 3860 (T $``$ 0.5 - 0.9 keV; discussed in paper I), demonstrate that Galactic coronae can survive in the cluster environment (e.g., Vikhlinin et. al 2001). Although we do not know the exact positions of these galaxies along the lines of sight, the fact that NGC 3842 is the cD galaxy of a galaxy concentration suggests that it should be located close to the bottom of the potential well. Using the $`\beta `$-model fit to the NW subcluster by Donnelly et al. (1998), we derive an ICM density of $``$ 5 $`\times `$ 10-4 cm -3 surrounding NGC 3842. The ICM surrounding NGC 3842 has a temperature of $``$ 4.5 keV (see Fig. 6 in paper I). Thus, the evaporation time-scale is $``$ 107 yr (no matter classical or saturated evaporation; Cowie & Mckee 1977). However, the radiative cooling time-scale — 3MgaskT/2$`\mu `$mpLX — is 2.3$`\times `$108 yr for NGC 3842. Thus, heat conduction at the boundary of NGC 3842 must be suppressed to a factor of $``$ 20 for the survival of its thermal halo. This provides an additional evidence for the suppression of heat conductivity in the ICM after the Chandra discovery of thermal halos in the two dominant galaxies of Coma (Vikhlinin et. al 2001). A tangled magnetic field is one possible reason for such suppression (e.g. Fabian 1994). When we gather more cases of suppressed heat conduction in ICM, the physics behind this phenomenon will be better understood.

The results presented here are made possible by the successful effort of the entire *Chandra* team to build, launch, and operate the observatory. We are very grateful to the referee - Dr. J. Irwin - for his very valuable comments to improve the manuscript. We are also grateful to W. Forman for many important comments to the manuscript. We acknowledge helpful discussions with G. Fabbiano, J. Huchra, M. Markevitch and A. Vikhlinin. This study was supported by NASA contract NAS8-38248.

TABLE 1

Member galaxiesa in the ACIS field

| Nameb | R.A.c | DEC.c | Type | Velocity | Log (LB/L) | Radiod | Infrared | Previous | $`\theta _{\mathrm{off}}^\mathrm{f}`$ | Chandra g | Count rate (c/ks) | Count rate (c/ks) |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  | (2000) | (2000) |  | (km/s) |  |  |  | X-raye | () |  | (0.5 - 2 keV)h | (2 - 7 keV)h |
| NGC 3842 | 11:44:02.2 | 19:56:59 | E | 6316$`\pm `$9 | 11.24 | 65 | - | Gp8 | 13.9 | 4 | 27.57 | - |
| UGC 6697 | 11:43:49.1 | 19:58:06 | Irr | 6725$`\pm `$2 | 11.00 | 58 | IRAS 11412+2014 | Gp4 | 16.7 | 3 | 28.07 | - |
| NGC 3862 (3C 264) | 11:45:05.0 | 19:36:23 | E, RG | 6511$`\pm `$6 | 10.99 | 84 | - | Ge28, Gp24 | 11.4 | 1 | 408.26 | 48.99 |
| NGC 3861 | 11:45:03.8 | 19:58:26 | Sb | 5085$`\pm `$2 | 10.94 | 83 | IRAS 11424+2015 | Gp23 | 14.1 | 2 | 6.04 | 5.82 |
| NGC 3860 | 11:44:49.17 | 19:47:44.4 | Sa | 5595$`\pm `$8 | 10.72 | 76 | IRAS 11422+2003 | Ge22, Gp18 | 3.8 | 5 | 11.51 | 2.35 |
| NGC 3837 | 11:43:56.3 | 19:53:42 | E | 6130$`\pm `$10 | 10.64 | 59 | - | Ge1, Gp5 | 12.4 | 6 | 11.39 | - |
| ARK 319 | 11:45:14.9 | 19:50:44 | E | 7739$`\pm `$7 | 10.61 | - | - | Gp26 | 10.5 | $`<`$ 0.8 (2.1) | - | - |
| NGC 3841 | 11:44:02.2 | 19:58:19 | E | 6356$`\pm `$7 | 10.54 | - | - | - | 15.1 | $`<`$ 2.1 (2.8) | - | - |
| NGC 3860B | 11:44:47.6 | 19:46:22 | Irr | 8293$`\pm `$9 | 10.53 | 75 | - | Gp18\* | 2.8 | 7 | 3.57 | - |
| NGC 3844 | 11:44:00.8 | 20:01:46 | S0/a | 6834$`\pm `$18 | 10.49 | - | - | - | 18.2 | $`<`$ 2.3 (2.5) | - | - |
| CGCG 097-109 | 11:44:28.38 | 19:44:08.7 | E | 6823$`\pm `$19 | 10.42 | - | - | - | 2.8 | 9 | 1.17 | - |
| IC 2955 | 11:45:03.9 | 19:37:14 | E | 6511$`\pm `$5 | 10.37 | - | - | - | 10.6 | $`<`$ 2.1 (2.4) | - | - |
| CGCG 097-124 NED01 | 11:44:56.9 | 19:43:55 | S0 | 7756$`\pm `$28 | 10.34 | - | - | - | 5.1 | $`<`$ 0.4 (1.1) | - | - |
| NGC 3845 | 11:44:05.5 | 19:59:46 | S0 | 5692$`\pm `$26 | 10.27 | - | - | - | 15.9 | $`<`$ 2.2 (2.6) | - | - |
| CGCG 097-101 | 11:44:19.0 | 19:50:41 | S0 | 6399$`\pm `$23 | 10.26 | - | - | - | 6.5 | $`<`$ 0.8 (1.7) | - | - |
| CGCG 097-090 | 11:43:57.5 | 19:57:13 | S0 | 6148$`\pm `$179 | 10.22 | - | - | - | 14.8 | $`<`$ 4.7 (5.1) i | - | - |
| CGCG 097-113 | 11:44:46.6 | 19:45:30 | S0 | 6419 | 10.18 | - | - | - | 2.5 | 10 | 0.54 | - |
| NGC 3861B | 11:45:06.9 | 19:57:59 | Sc | 5970$`\pm `$75 | 10.18 | - | - | - | 14.4 | 8 | 2.00 | - |
| CGCG 097-118 | 11:44:52.2 | 19:36:36 | S0 | 6556 | 10.12 | - | - | - | 9.7 | $`<`$ 1.6 (2.1) | - | - |
| CGCG 097-105 | 11:44:20.8 | 19:49:34 | S0/a | 5522$`\pm `$34 | 10.09 | - | - | - | 5.4 | $`<`$ 0.7 (1.7) | - | - |
| 2MASXi J1144481+193451 | 11:44:48.1 | 19:34:51 |  | 6256$`\pm `$214 | 9.95 | - | - | - | 11.1 | $`<`$ 1.7 (2.1) | - | - |
| 2MASXi J1144365+194505 | 11:44:36.6 | 19:45:06 |  | 8230$`\pm `$51 | 9.92 | - | - | - | 0.5 | $`<`$ 0.3 (0.7) | - | - |
| CGCG 097-110 | 11:44:25.1 | 19:49:42 | S0 | 4427$`\pm `$32 | 9.86 | - | - | - | 4.9 | $`<`$ 0.6 (1.6) | - | - |
| CGCG 097-119 | 11:44:47.9 | 19:41:19 | S0/a | 4869$`\pm `$35 | 9.86 | - | - | Ge21, Gp17 | 5.1 | $`<`$ 0.5 (1.0) | - | - |
| CGCG 097-124 NED02 | 11:44:57.6 | 19:44:18 |  | 6031$`\pm `$56 | 9.77 | - | - | - | 5.2 | $`<`$ 0.4 (0.6) | - | - |

a The type, velocity and LB of galaxies are from NED. “-” in the table means no detection.

b The galaxies with asterisk are detected as extended sources and were discussed in paper I. NGC 3860 has both point and extended components.

c If the galaxy is detected in this Chandra observation, the X-ray position is listed. Otherwise, the optical position from NED is listed.

d The source number in GC94

e The source number in G95; “Gp” means PSPC sources and “Ge” means EHRI sources.

f The off-axis angle of the source.

g If the galaxy is detected by Chandra, we list the source number in Fig. 2. Otherwise, 3 $`\sigma `$ upper limits (0.5 - 2 keV, in 1040 ergs s-1) on the point-like emission and extended emission (in bracket) are given. The aperture for the point-like emission is set at 90% EEAR. The aperture for the extended emission is set according to the optical galaxy sizes, from 30′′ to 2.

h The exposure maps used are computed relatively to the aimpoint. Thus, the correction on vignetting has been included. For NGC 3860, both point and extended components are included.

i This galaxy is close to the bright X-ray source EXO 1141.3-2013 so that the upper limits are relatively large.

TABLE 2

Point Sources with unknown originsa

| #b | R.A.c | DEC.c | $`\theta _{\mathrm{off}}^\mathrm{d}`$ | Count Rate (c/ks) | Count Rate (c/ks) | $`\mathrm{\Gamma }^\mathrm{f}`$ | Commentg |
| --- | --- | --- | --- | --- | --- | --- | --- |
|  | (2000) | (2000) | () | (0.5 - 2 keV)e | (2 - 7 keV)e |  |  |
| 14 | 11:44:09.46 | 19:50:10.8 | 7.8 | 13.71 | 2.25 | 2.03$`{}_{0.21}{}^{}{}_{}{}^{+0.22}`$ | Gp10, Ge7, Lp26 |
| 15 | 11:44:27.16 | 19:43:38.6 | 2.8 | 11.8 | 3.07 | 1.76$`{}_{0.13}{}^{}{}_{}{}^{+0.14}`$ | Gp11\*, Ge14 |
| 16 | 11:44:35.59 | 19:50:30.0 | 5.0 | 9.50 | 1.29 | 2.15$`{}_{0.24}{}^{}{}_{}{}^{+0.26}`$ |  |
| 17 | 11:44:20.84 | 19:44:36.0 | 3.7 | 8.37 | 2.25 | 1.68$`{}_{0.16}{}^{}{}_{}{}^{+0.15}`$ | Gp11 |
| 18 | 11:44:35.22 | 19:51:31.9 | 6.0 | 6.89 | 1.92 | 1.67$`{}_{0.25}{}^{}{}_{}{}^{+0.28}`$ | Gp12, Ge17, Lp10 |
| 19 | 11:45:16.1 | 19:49:50 | 10.3 | 6.89 | 1.66 | 1.9$`{}_{0.4}{}^{}{}_{}{}^{+0.5}`$ |  |
| 20 | 11:45:07.5 | 19:35:51 | 12.1 | 4.95 | 2.38 | 1.0$`\pm `$0.3 |  |
| 21 | 11:44:36.55 | 19:38:30.9 | 7.0 | 5.74 | 1.43 | 1.8$`\pm `$0.3 | Gp13 |
| 22 | 11:44:57.78 | 19:53:01.8 | 9.1 | 5.35 | 1.44 | 1.8$`{}_{0.4}{}^{}{}_{}{}^{+0.6}`$ |  |
| 23 | 11:45:07.8 | 19:54:18 | 11.5 | 4.62 | 1.18 | 1.7$`{}_{0.4}{}^{}{}_{}{}^{+0.6}`$ | Gp26, Lp15 |
| 24 | 11:44:36.91 | 19:49:41.1 | 4.2 | 2.95 | 2.73 | 1.4$`{}_{0.4}{}^{}{}_{}{}^{+0.6}`$ | NH: 1.0$`{}_{0.5}{}^{+0.8}\times `$1022 cm-2 |
| 25 | 11:44:36.53 | 19:39:16.9 | 6.2 | 3.90 | 1.74 | 1.5$`\pm `$0.3 |  |
| 26 | 11:45:15.8 | 19:57:24 | 15.1 | 5.62 | - | 1.9$`\pm `$0.5 | Gp25, Lp25 |
| 27 | 11:44:12.02 | 19:52:42.8 | 9.2 | 4.92 | - | 1.9$`{}_{0.6}{}^{}{}_{}{}^{+0.9}`$ | Ge8 |
| 28 | 11:44:38.34 | 19:44:05.9 | 1.5 | 2.26 | 0.78 | 1.7$`{}_{0.3}{}^{}{}_{}{}^{+0.4}`$ |  |
| 29 | 11:44:17.57 | 19:46:09.3 | 4.4 | 1.95 | 0.76 | 1.4$`{}_{0.7}{}^{}{}_{}{}^{+0.9}`$ |  |
| 30 | 11:45:13.4 | 19:34:34 | 14.2 | - | - | - | 2.39 c/ks |
| 31 | 11:44:39.19 | 19:45:26.4 | 0.7 | 1.56 | 0.59 | 1.4$`\pm `$0.4 |  |
| 32 | 11:45:09.5 | 19:35:01 | 13.1 | - | 2.11 | - |  |
| 33 | 11:44:53.83 | 19:46:36.7 | 4.3 | 1.48 | 0.39 | - |  |
| 34 | 11:44:55.33 | 19:43:37.7 | 4.9 | 1.83 | - | 2.2$`{}_{0.9}{}^{}{}_{}{}^{+1.8}`$ |  |
| 35 | 11:45:29.3 | 19:53:59 | 15.1 | 1.83 | - | - |  |
| 36 | 11:44:59.4 | 19:56:39 | 12.3 | - | - | - | 1.79 c/ks |
| 37 | 11:44:52.58 | 19:44:55.5 | 3.9 | 1.64 | - | 2.2$`{}_{0.6}{}^{}{}_{}{}^{+0.8}`$ |  |
| 38 | 11:44:20.82 | 19:48:10.1 | 4.5 | 1.05 | 0.45 | - |  |
| 39 | 11:45:10.1 | 19:52:56 | 11.0 | - | - | - | 1.50 c/ks |
| 40 | 11:44:27.36 | 19:44:54.0 | 2.1 | 1.01 | 0.37 | - |  |
| 41 | 11:44:11.07 | 19:49:17.0 | 7.0 | 1.29 | - | - |  |
| 42 | 11:44:37.81 | 19:47:51.3 | 2.4 | 0.87 | 0.40 | - |  |
| 43 | 11:44:50.1 | 19:56:32 | 11.4 | - | - | - | 1.10 c/ks |
| 44 | 11:44:45.20 | 19:48:28.2 | 3.7 | 1.08 | - | - |  |
| 45 | 11:44:23.93 | 19:50:21.6 | 5.6 | 1.02 | - | - |  |
| 46 | 11:44:56.91 | 19:44:59.5 | 4.9 | 0.97 | - | - |  |
| 47 | 11:44:27.00 | 19:44:48.0 | 2.3 | 0.96 | - | - |  |
| 48 | 11:44:30.67 | 19:39:54.2 | 5.8 | - | 0.86 | - |  |
| 49 | 11:44:31.06 | 19:44:35.5 | 1.5 | - | 0.86 | - |  |
| 50 | 11:45:14.6 | 19:50:17 | 10.2 | - | 0.79 | - |  |
| 51 | 11:44:28.24 | 19:46:59.0 | 2.3 | 0.73 | - | - |  |
| 52 | 11:44:46.40 | 19:47:40.7 | 3.3 | 0.72 | - | - |  |
| 53 | 11:44:39.38 | 19:40:23.1 | 5.2 | - | - | - | 0.72 c/ks |
| 54 | 11:44:27.00 | 19:45:48.8 | 2.2 | 0.66 | - | - |  |
| 55 | 11:44:20.49 | 19:47:21.3 | 4.1 | - | - | - | 0.49 c/ks |
| 56 | 11:44:29.12 | 19:41:34.7 | 4.3 | - | - | - | 0.48 c/ks |
| 57 | 11:44:42.24 | 19:45:03.0 | 1.5 | 0.45 | - | - |  |
| 58 | 11:44:37.09 | 19:46:58.9 | 1.5 | - | - | - | 0.39 c/ks |
| 59 | 11:44:35.14 | 19:46:25.5 | 0.9 | - | 0.37 | - |  |
| 60 | 11:44:50.05 | 19:44:01.6 | 3.6 | - | 0.35 | - |  |
| 61 | 11:44:24.53 | 19:45:04.7 | 2.8 | - | 0.35 | - |  |

a The point sources associated with known member galaxies and QSOs (source 1 - 10 and 11 - 13) are not included in this table. They are discussed in $`\mathrm{\S }`$4 and $`\mathrm{\S }`$5.1 respectively. The detection threshold is 3 $`\sigma `$ in the 0.5 - 7 keV energy band. None of the sources show significant X-ray variation.

b The source number in Fig. 2.

c The uncertainties of the positions are $``$ 0.5′′ near the aimpoint, up to 4 ′′ in the farthest positions to the aimpoint.

d The off-axis angle of the source.

e The exposure maps used are computed relatively to the aimpoint. Thus, the correction on vignetting has been included.

f The results of the power law fits. Only sources with more than 50 counts were analyzed. The absorption is fixed at the Galactic value unless the spectrum strongly suggests intrinsic absorption, e.g., source 24.

g “Gp” means ROSAT PSPC sources detected by G95; “Ge” means EHRI sources detected by G95; “Lp” means ROSAT PSPC sources detected by L98.

Note: For the point sources only seen in the broad band image, only the count rates in the 0.5 - 7 keV band are given.

TABLE 3

Point sources detected by previous missionsa

| B83 #b | G95 #c | L98 #d | Chandra resulte |
| --- | --- | --- | --- |
| Bp1 | Ge2, Gp6 | Lp28 | 11 |
| Bp2 | Ge5, Gp9 | - | 12 |
| Bp3 | - | - | - |
| Bp5 | - | - | - |
| Bp8 | Ge28, Gp24 | Lp1 | 1 |
| - | Ge1, Gp5 | Lp21 | 6 |
| - | Ge3 | - | - |
| - | Ge6 | - | - |
| - | Ge8 | - | 27 |
| - | Ge10 | - | - |
| - | Ge11 | - | - |
| - | Ge13 | - | - |
| - | Ge15 | - | - |
| - | Ge18 | - | - |
| - | Ge20 | - | - |
| - | Ge24 | - | - |
| - | Ge25, Gp23 | Lp9 | 2 & 8 |
| Be14 (ex) | Ge26 | - | - |
| - | Gp20 | - | 22 |
|  | Gp4 | Lp7 (ex) | 3 (ex) |
| - | Gp8 | Lp28 | 4 |
| - | Gp11 | - | 17 |
| - | Gp13 | - | 21 |
|  | Gp25 | Lp25 | 26 |
|  | Gp26 | Lp15 | 19 |
| Be2 (ex) | Ge7, Gp10 | Lp26 | 14 |
| Be8 (ex) | Ge22 (ex), Gp18 | Lp16 (ex) | 5 |

a Only the “point sources” claimed previously in the field are included (27 of 47) and unless pointed out, all the sources are point-like. “(ex)” means extended. “-” means no detection, while blank means not in the field.

b Source number in B83; the first letter of the source ID indicates the author. ‘p’ means point-like and ‘e’ means extended.

c Source number in G95; ‘p’ means PSPC source and ‘e’ means EHRI source.

d Source number in L98; ‘p’ means PSPC source.

e The source number in Fig. 2

TABLE 4

The known QSOs detected by Chandra a

| #b | R.A. | DEC. | z | Radioc | V | Counts | $`\mathrm{\Gamma }^\mathrm{d}`$ | L$`{}_{}{}^{\mathrm{e}}{}_{\mathrm{X}}{}^{}`$ | Commentf |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  | (J2000) | (J2000) |  |  | (mag) |  |  | ergs s-1 |  |
| 11 | 11:43:56.90 | 19:56:49.7 | 0.335 | - | 18.5 | 3280 | 2.29$`{}_{0.13}{}^{}{}_{}{}^{+0.14}`$ | 1.1$`\times `$1044 | Ge2, Gp6, EXO 1141.3+2013 |
| 12 | 11:44:05.69 | 19:57:35.8 | 0.946 | - | 18.5 | 690 | 2.6$`{}_{0.4}{}^{}{}_{}{}^{+0.5}`$ | 1.6$`\times `$1044 | Ge5, Gp9 |
| 13 | 11:44:05.30g | 19:56:03.0g | 2.205 | 67 | 21 | 200 | 2.0$`{}_{0.6}{}^{}{}_{}{}^{+1.0}`$ | 5.6$`\times `$1044 | First detected |

a The coordinates, redshift and V magnitude of QSOs are from NED and Arp & Gavazzi (1984).

b The source number in Fig. 2

c The source number in Table 2 of GC94

d The best-fit photon index of a power law modified by the Galactic absorption. We fitted the 0.75 - 9 keV spectra. If only 2 - 9 keV spectra are fitted, the results are quite similar to ones shown here.

e In the 2 - 10 keV band

f Previous detections if have

g This coordinate is obtained from Arp & Gavazzi (1984). The coordinate from Chandra is within 1.5′′ of this position.


text:
# References

How one can estimate relativistic contribution into nucleon observables in the relativistic constituent quark model

T.P.Ilichova
Francisk Skaryna Gomel State University,
Laboratory of Particle Physics, JINR

Talk at the VIth International School-Seminar
“Actual Problems of High Energy Physics”
August 7-16, 2001, Gomel, Belarus

## Abstract

A nonrelativistic decomposition for the quark energy by the ratio of the dispersion of quark momentum squared and the effective quark mass is investigated in the framework of the relativistic oscillator constituent quark model as bound systems of three valence quarks. It is shown that relativistic corrections are defined by dispersion of the squared absolute value of the quark momentum. The variations of the quark mass and oscillator parameter are studied in detail both in the spectrum and in the nucleon magnetic moments.

The nonrelativistic constituent quark model gives good results in the study of the static properties of the nucleon, however, the dynamical characteristics requare calculation of the pionic cloud or/and including quark structure parameters.

This might be an indication that a static parameters are weakly sensitive to the quark structure, and the quark anomal magnetic moments are small and the quarks show no structure in the observables of the baryons magnetic moments. In this case a spectrum and magnetic moments of the nucleon can be used for the study a relativistic contribution separately from the contribution of quark structure. The static parameters also weakly depend on a potential type . Therefore, choosing particular type of the potential one can in general conclude about the relativistic contribution into model observables and spread these conclusions into dynamical properties in our model.

We will consider a generalization  of the nucleon nonrelativistic oscillator model  based on a relativistic quasipotential equation for wave function of the relative motion $`\phi `$ :

$$\delta \left(\underset{k=1}{\overset{3}{}}\underset{k}{\overset{o}{𝐩}}\right)(\underset{k=1}{\overset{3}{}}E_{\underset{k}{\overset{o}{𝐩}}}M)\phi (\stackrel{o}{𝐩})=V(\stackrel{o}{𝐩}|\stackrel{o}{𝐩^{}})$$

$$\delta (\underset{k=1}{\overset{3}{}}\stackrel{o}{𝐩{}_{k}{}^{}{}_{}{}^{}}\underset{k=1}{\overset{3}{}}\underset{k}{\overset{o}{𝐩}})\delta \left(\underset{k=1}{\overset{3}{}}\stackrel{o}{𝐩{}_{k}{}^{}{}_{}{}^{}}\right)\phi (\stackrel{o}{𝐩^{}})\underset{k=1}{\overset{3}{}}d\mathrm{\Omega }_{𝐩_k^{}}.$$
(1)
Where $`M`$ \- nucleon mass, $`V`$ \- quasipotential, $`𝐩_k`$ \- quark momentum, $`\underset{i}{\overset{o}{𝐩}}`$ -quark momentum in the nucleon rest frame, $`\stackrel{o}{𝐩}\underset{1}{\overset{o}{𝐩}},\underset{2}{\overset{o}{𝐩}},\underset{3}{\overset{o}{𝐩}}`$, $`\stackrel{o}{𝐩^{}}\stackrel{o}{𝐩{}_{1}{}^{}{}_{}{}^{}},\stackrel{o}{𝐩{}_{2}{}^{}{}_{}{}^{}},\stackrel{o}{𝐩{}_{3}{}^{}{}_{}{}^{}}`$, $`d\mathrm{\Omega }_{p_k}=d𝐩_k/E_{𝐩_k}`$ \- element of volume, $`m`$ \- quark mass.

Let us suppose that the nonrelativistic decomposition of the quark energy $`E_{\underset{i}{\overset{o}{𝐩}}}=\sqrt{m^2+\underset{i}{\overset{2}{\stackrel{o}{𝐩}}}}`$ one should perform without using the ratio $`\frac{\underset{i}{\overset{o}{𝐩}}}{m}`$, but using a deviation momentum from average momentum, i.e. the dispersion of the quark momentum squared. For this aim we introduce the definition of the effective quark mass $`m_{eff}=\sqrt{m^2+\underset{k}{\overset{2}{\stackrel{o}{𝐩}}}},\text{here}f=𝑑\mathrm{\Omega }_{𝐩_1}𝑑\mathrm{\Omega }_{𝐩_2}|\phi |^2f.`$ The quark energy is: $`E_{\underset{k}{\overset{o}{𝐩}}}=\sqrt{m^2+\underset{k}{\overset{2}{\stackrel{o}{𝐩}}}+\underset{k}{\overset{2}{\stackrel{o}{𝐩}}}\underset{k}{\overset{2}{\stackrel{o}{𝐩}}}}=\sqrt{m_{eff}^2+\mathrm{\Delta }_k},\mathrm{\Delta }_k=\underset{k}{\overset{2}{\stackrel{o}{𝐩}}}\underset{k}{\overset{2}{\stackrel{o}{𝐩}}}.`$
Let us consider the nonrelativistic decomposition of the quark energy via ratio $`\mathrm{\Delta }_k/m_{eff}`$: $`E_{\underset{k}{\overset{o}{𝐩}}}=m_{eff}+\frac{\mathrm{\Delta }_k}{2m_{eff}}\frac{\mathrm{\Delta }_k^2}{8m_{eff}^3}+\mathrm{}.`$ Our aim is to investigate the lowest-order relativistic corrections in the quark energy:

$$\delta _{E_k}E_{\underset{k}{\overset{o}{𝐩}}}E_{\underset{k}{\overset{o}{𝐩}}}^{nonrel}=E_{\underset{k}{\overset{o}{𝐩}}}m_{eff}\frac{\mathrm{\Delta }_k}{2m_{eff}}\frac{\mathrm{\Delta }_k^2}{8m_{eff}^3}=$$

$$=\frac{1}{8m_{eff}^3}\left[\underset{k}{\overset{4}{\stackrel{o}{𝐩}}}+\underset{k}{\overset{2}{\stackrel{o}{𝐩}}}^22\underset{k}{\overset{2}{\stackrel{o}{𝐩}}}^2\right]=\frac{1}{8m_{eff}^3}\left[\underset{k}{\overset{4}{\stackrel{o}{𝐩}}}\underset{k}{\overset{2}{\stackrel{o}{𝐩}}}^2\right]=\frac{\sigma _{\underset{k}{\overset{2}{\stackrel{o}{𝐩}}}}^2}{8m_{eff}^3}$$
(2)
where, $`\sigma _{\mathrm{\Delta }_k}=\sigma _{\underset{k}{\overset{2}{\stackrel{o}{𝐩}}}}=\sqrt{\underset{k}{\overset{4}{\stackrel{o}{𝐩}}}\stackrel{2}{\stackrel{o}{𝐩}}^2}`$ \- dispersion of momentum squared.

The undimension parameter can be written as $`\delta _E=\frac{\underset{k=1}{\overset{3}{}}\delta _{E_k}}{\underset{k=1}{\overset{3}{}}E_{\underset{k}{\overset{o}{𝐩}}}}100\%.`$

Now we can decomposite the quark energy in the Eq. (1): $`E_{\underset{i}{\overset{o}{𝐩}}}=\sqrt{m_{eff}^2+\mathrm{\Delta }}=m_{eff}+\frac{\mathrm{\Delta }_k}{2m_{eff}}+W_k^{rel}=m_{eff}+\frac{\underset{k}{\overset{2}{\stackrel{o}{𝐩}}}}{2m_{eff}}\frac{\underset{k}{\overset{2}{\stackrel{o}{𝐩}}}}{2m_{eff}}+W_k^{rel},`$ where $`W_k^{rel}`$ is the relativistic contribution. Thus,

$$\delta \left(\underset{k=1}{\overset{3}{}}\underset{k}{\overset{o}{𝐩}}\right)(\frac{\underset{1}{\overset{2}{\stackrel{o}{𝐩}}}}{2m_{eff}}+\frac{\underset{2}{\overset{2}{\stackrel{o}{𝐩}}}}{2m_{eff}}+\frac{\underset{3}{\overset{2}{\stackrel{o}{𝐩}}}}{2m_{eff}}+\underset{k}{}W_k^{rel}+3m_{eff}M+C)\phi (\stackrel{o}{𝐩})=$$

$$=\delta \left(\underset{k=1}{\overset{3}{}}\underset{k}{\overset{o}{𝐩}}\right)V(\stackrel{o}{𝐩}|\stackrel{o}{𝐩^{}})|_{{\scriptscriptstyle }\stackrel{o}{𝐩{}_{k}{}^{}{}_{}{}^{}}=0}\phi (\stackrel{o}{𝐩^{}})|_{{\scriptscriptstyle }\stackrel{o}{𝐩{}_{k}{}^{}{}_{}{}^{}}=0}d\mathrm{\Omega }_{\stackrel{o}{𝐩{}_{1}{}^{}{}_{}{}^{}}}d\mathrm{\Omega }_{\stackrel{o}{𝐩{}_{2}{}^{}{}_{}{}^{}}}$$
(3)
Here, we may to perform the overdefinition of the potential and involve constant $`C=_k\frac{\underset{k}{\overset{2}{\stackrel{o}{𝐩}}}}{2m_k^{eff}}`$ into the potential $`V`$.

Choosing the potential $`V`$ in the Eq. (3) as a generalization of the 3-particle nonrelativistic oscillator, Eq. (3) can be represented as ( $`k`$ \- harmonic oscillator parameter. ) :

$$\delta \left(\underset{k=1}{\overset{3}{}}\underset{k}{\overset{o}{𝐩}}\right)[\frac{\underset{1}{\overset{2}{\stackrel{o}{𝐩}}}}{2m_{eff}}+\frac{\underset{2}{\overset{2}{\stackrel{o}{𝐩}}}}{2m_{eff}}+\frac{\underset{3}{\overset{2}{\stackrel{o}{𝐩}}}}{2m_{eff}}+\underset{k}{}W_k^{rel}+3m_{eff}\stackrel{~}{M}$$

$$k(_{\underset{1}{\overset{o}{𝐩}}}^2+_{\underset{2}{\overset{o}{𝐩}}}^2+_{\underset{1}{\overset{o}{𝐩}}}_{\underset{2}{\overset{o}{𝐩}}})]\phi (\stackrel{o}{𝐩})=0$$
(4)
In order to estimate the relativistic contribution into spectrum and nucleon magnetic moments we will use wave function in the zero-order approximation. Alter neglecting $`_kW_k^{rel}`$ in the Eq. (4) one can solve exactly the zero-order aproximation equation (4) in analogous as in the nonrelativistic quark model: $`\phi ^{osc}=N\mathrm{exp}\left(\frac{𝐤^2}{2\lambda ^2}\frac{𝐤_{}^{}{}_{}{}^{2}}{2\lambda _{}^{}{}_{}{}^{2}}\right),`$ here $`\lambda ^2=\gamma ^2/2,\lambda _{}^{}{}_{}{}^{2}=2\gamma ^2/3,\gamma ^2=m_{eff}\omega ,\omega =\sqrt{3k/m_{eff}},𝐤=\frac{1}{2}(\underset{1}{\overset{o}{𝐩}}\underset{2}{\overset{o}{𝐩}}),𝐤^{}=(\underset{1}{\overset{o}{𝐩}}+\underset{2}{\overset{o}{𝐩}}).`$

The calculation of nucleon current matrix element is described in Ref. . The extraction of the magnetic moment has been performed using magnetic form factor: $`\mu =G_M(0)=lim_{𝐊0}G_M(𝐊)`$

$$\mu =\underset{𝐊0}{lim}\frac{i(2\pi )^3J_2^{\frac{1}{2}\frac{1}{2}}(𝐊,\mathrm{𝟎})\sqrt{2E_𝐊(M+E_𝐊)}}{e\left|𝐊\right|}=\underset{𝐊0}{lim}\frac{i(2\pi )^3J_2^{\frac{1}{2}\frac{1}{2}}(𝐊,\mathrm{𝟎})2M}{e\left|𝐊\right|}$$
(5)
here $`J_\mu ^{\lambda ^{}\lambda }(𝐊,\mathrm{𝟎})\lambda ^{}𝐊|J_\mu (0)|\lambda \mathrm{𝟎}`$

The current matrix element is represented as :

$$𝐊\lambda ^{}\tau ^{}J_\mu \mathrm{𝟎}\lambda \tau =3d\mathrm{\Omega }_{p_1}d\mathrm{\Omega }_{p_2}\phi (\underset{1}{\overset{o}{𝐩}},\underset{2}{\overset{o}{𝐩}},\underset{3}{\overset{}{\stackrel{o}{𝐩}}})\chi _{\lambda _1^{}\lambda _2^{}\lambda _3^{}\tau _1\tau _2\tau _3}^{\frac{1}{2}\lambda \tau }$$

$$\left[\stackrel{+}{D^{(1/2)}}(L_{\underset{12}{\overset{o}{𝐩}}},\stackrel{\overline{)}o}{𝐩_1})D{}_{}{}^{(1/2)}(L_𝐊^1,𝐩_1)D{}_{}{}^{(1/2)}(L_{𝐩_{12}},𝐩_1)\right]_{\lambda _1^{}\lambda _1}$$

$$\left[\stackrel{+}{D^{(1/2)}}(L_{\underset{12}{\overset{o}{𝐩}}},\stackrel{\overline{)}o}{𝐩_2})D{}_{}{}^{(1/2)}(L_𝐊^1,𝐩_2)D{}_{}{}^{(1/2)}(L_{𝐩_{12}},𝐩_2)\right]_{\lambda _2^{}\lambda _2}$$

$$D{}_{\lambda _3^{}\lambda _3^{\prime \prime }}{}^{}{}_{}{}^{(1/2)}(L_𝐊^1,𝐩_3^{})𝐩_3^{}\lambda _3^{\prime \prime }\tau _3j_\mu ^{(3)}𝐩_3\lambda _3\tau _3\chi _{\lambda _1\lambda _2\lambda _3\tau _1\tau _2\tau _3}^{\frac{1}{2}\lambda \tau }\phi (𝐩_1,𝐩_2,𝐩_3),$$
(6)
where $`D{}_{\lambda _3^{}\lambda _3^{\prime \prime }}{}^{}{}_{}{}^{(1/2)}(L_𝐊^1,𝐩_3^{})`$ \- Wigner rotation matrix. Here, neutron and proton differs in the isospin third projection $`\tau =+\frac{1}{2}(p)`$, $`\tau =\frac{1}{2}(n)`$, SU(6)- wave function of the nucleon $`1/2^+`$ is given by .

The current matrix element and the averages $`f`$ were integrated using the following methods: VEGAS , MISER , method of the simple random sampling . VEGAS and MISER give result faster on $`20\%`$ with $`1\%`$ the statistic accuracy in despite of the simple random sampling method.

One should be clarified the basis for our choice of the parameters region. The values of the parameters were used as $`\omega =0.52GeV,x=m_d/m_s=0.6,\mathrm{\Delta }m=m_sm_d=0.28GeV`$ in the Isgur-Karl model . In this situation results were weakly sensitive to $`x`$ and $`\mathrm{\Delta }m.`$ For $`x=0.6`$ $`m_d0.42GeV,\gamma ^2=0.22,`$ for $`x=0.7`$ $`m_d0.57GeV,\gamma ^2=0.30.`$ Choosing the model parameters so as to coordinate with these values, we assume that $`\gamma ^2[0.06÷0.6]GeV^2.`$ The values of quark mass from Isgur-Karl model ($`0.42,\mathrm{\hspace{0.17em}0.57}GeV`$) correspond effective quark mass $`m_{eff}`$ in our model. We suppose quark mass as following: $`m_q[0.1÷0.33]GeV.`$

Conclusions.

* The value of the relativistic contribution in the energy $`\delta _E`$ is less than $`20\%`$ in the whole investigated region; $`\delta _E`$ is less than $`6\%`$ for $`m_q\stackrel{>}{}0.2GeV`$.
* The magnetic moments of the proton and neutron are obtained with $`2\%`$ accuracy from experimental data for following parameters:
$`[\gamma ^2(GeV^2)`$, $`m_q(GeV)`$,$`m_{eff}(GeV)]`$: $`[0.065,\mathrm{\hspace{0.33em}0.22}÷0.26,\mathrm{\hspace{0.33em}0.38}÷0.39],`$ $`[0.07,\mathrm{\hspace{0.33em}0.22}÷0.3,\mathrm{\hspace{0.33em}0.40}÷0.42]`$, $`[0.08,\mathrm{\hspace{0.33em}0.24}÷0.3,\mathrm{\hspace{0.33em}0.42}÷0.44],`$ $`[0.095,\mathrm{\hspace{0.33em}0.22}÷0.32,\mathrm{\hspace{0.33em}0.46}÷0.48]`$, $`[0.1,\mathrm{\hspace{0.33em}0.24}÷0.32,\mathrm{\hspace{0.33em}0.47}÷0.49]`$. It should be noticed, that the region with $`m_q\stackrel{>}{}0.2GeV,`$ corresponds the good agreement with the experimental data both for nucleon magnetic moments with $`2\%`$ accuracy and for relativistic contribution into quark energy $`\delta _E`$ with $`6\%`$ accuracy. That has been considered as a proof of the applicability of the nonrelativistic expansion via ratio $`\mathrm{\Delta }_k/m_{eff}`$.
* In ref.  was obtained, that best simultaneous reproduction of the proton electric and magnetic form factors $`G_E`$ and $`G_M`$ in oscillator model can be obtained for $`m_q=0.162GeV`$, $`\gamma ^2=0.35GeV^2.`$ For this parameters the proton magnetic moments differ from experimental data up to $`20\%`$. Therefore one can suppose that agreement data for static and dynamical characteristics can be obtained if we allow quarks to have structure: radius or magnetic moments.
* Effective quark mass is not fixed in region where nucleon magnetic moments are reproduced. The value of $`m_q^{eff}`$ depends on $`m_q`$, $`\gamma ^2`$ and varied up $`0.48GeV`$ to $`1.9GeV`$ for $`m_q[0.1÷0.32],\gamma ^2[0.06÷0.6].`$