Option Pricing and Risks Controlling in Chinese Market
LI Caiyun · Science Technology and Engineering · 2008
The theory of stochastic process is applied to describe and study the fluctuations of stock prices in Chinese stock market,and the jump of price changing is introduced into the financial model by applying the contact process theory.For the financial model,the formula of pricing a European calls option with the risk neutral condition is obtained.Further the range of European call option in a risk-averse market and the method of avoiding risks in option investment are given.