Application Research on Options and Options Pricing
|Keywords||Options Hedging Arbitrage positions Replicating Risk-neutral world|
Option is a kind of financial derivatives. It plays an important role in hedging, speculation and risk escaping. It develops fast and applies widely in the modern international financial markets. But in China, there is weakness of options researches both in theory and in practice.Firstly this thesis introduces option’s meanings, types and its main applications in the world nowadays. Secondly, the following contents are analyzed: ⅰ,the keystones of options pricing. ⅱ, Black---Sholes pricing model. ⅲ, reformative options pricing model. ⅳ, applications range of these pricing models. Thirdly, how options idea and OPT are applied in practice is showed. In the end, it puts forward the importance of using options in domestic market.The opportunities belonging to the enterprise may be regarded as options. One strategy is formed when options combined with financial tools, which is used in investment, finance and enterprise strategy management. This options method overcomes the shortcomings of the NPV by which investment projects can only be accepted or refused passively. It also allows managers to exert the asset or exploit the opportunities on their own initiative. Pricing the options by Excel is more exact and quick than by hand. It shows that options method is more practical and reliable in practice compared with other methods such as NPV.The thesis aims to explain the value of the researches on the OPT and brings forward its guiding meaning to the domestic options applications.