The Valuation And Application Of Pass-dependent Options

Stock option bargaining was carried out formally in Chicago Board Options Exchange on 26th, April 1973. It's 31 years ever since then, now option market has become an important part of international financial market.In contrast with that, option market is still a theoretical and unpractical concept in China. Under the development trend of globalization of economy unification and finance innovation in 21 century, we have no choice, but to open China all the world and step up in finance innovation. So it's very necessary to study systemically option, which is a core tool of innovative finance. Understanding across-the-board the meaning and characters of option is not only of important theory value for mastering high-class financial technology, but also of profound practical significance in the cultivating and developing of option market in China.Therefore, in this paper the general knowledge of option and developing course of theory of option pricing was firstly presented; Then, on the assumption of classical Black-Scholes model, the valuation of pass-dependent options were discussed in detail, and the same time the examples of exotic options application were given. All these outspread prelude for understanding of option, and furthermore lay good theoretical basis for discussing the pricing of other exotic options.