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The Research of Pricing Problem of Asian Option

Author: LiuRuiRui
Tutor: XuYun
School: Xinjiang University
Course: Probability Theory and Mathematical Statistics
Keywords: Asian options Geometric mean Credit risk Poisson process Part of the average
CLC: F224
Type: Master's thesis
Year: 2011
Downloads: 49
Quote: 0
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Abstract


With the rapid development of modern financial industry , there has been a variety of new derivative products and options as an important member of the financial derivatives is both an effective hedging instruments , is a wonderful speculative method , which makes the option price much investors and speculators concern . option pricing is very wide , but the general pricing models assume that the option is no credit risk for exchange traded options , this assumption is reasonable ; default assumptions in the OTC market ( OTC market ) does not hold. divided due to the Asian option in the exotic options traded in the over-the-counter , so most of the Asian options are credit risk This article focuses on the pricing of Asian options . four chapters: Chapter introduction , the introduction thesis writing background , the definition of the Asian option and paid the second chapter discusses the average payment Asian option pricing , assuming an average price depends only on part-time in the life of the option , application of risk -neutral valuation principle , given the continuous part of the geometric average pay Asian option pricing formula discussed in the structural model of credit risk pricing of Asian options , taking into account the underlying assets and enterprise value . sex , corporate debt are given credit risk Asian option pricing formula for the functions and stochastic processes both cases , and discuss the relationship between bullish and bearish parity . Chapter discussed in the reduced model credit risk sub- option Valuation intensity as a function of lambda ( t ) the non- homogeneous Poisson process to describe the process of default , given credit risk Asian option pricing formula .

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CLC: > Economic > Economic planning and management > Economic calculation, economic and mathematical methods > Economic and mathematical methods
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