Zero Interest Bonds And Options Prices Distribution Function Based On VASICEK Model

With the development of modern economic and finance, the securities market plays a more and more important role in the real economic life and occupies an increasingly important position. Compared to the development pace of real economic, the development pace of securities market can be used to describe as rapid. The volume of transaction in 1995 is about 80 times of the volume of transaction of 1973. And the unbelievable increase happened in the filed of derivatives, the issued financial derivatives in 1996 is totally around 3.5 trillion U.S. dollars, and among these transactions, about 2.5 trillion U.S. dollars was OTC, and the rest was happened in the official exchange. By end of 1998, the nominal value of derivatives transactions had happened in the official exchange within 5 years increased from 7.7 trillion U.S. dollars to 13.5 trillion U.S. dollars, meanwhile, the nominal value of derivative securities(OTC) increased from 8.7 trillion U.S. dollars to 51 trillion U.S. dollars, then, the nominal value of unliquidated derivatives was total about 64 trillion U.S. dollars, and the academic field also emerged frontier science borrowing for the financial science, physics financial science, financial engineering, etc.1973, Black and Scholes put forward the differential equation that any derivative securities prices based on any non-dividend paying stock must be satisfied, that is Black-Scholes differential equation. From then on ,the Black-Scholes differential equation become the footstone of...