The Theoretical And Empirical Study On Chinese Warrants Product

Warrant is one of mature financial evolutionary tools in western financial market, which produced in USA in 1911. In China, warrant was introduced during the non-tradable share reform as a compensational price way, abiding by marketable principles in 2005. Making a fixed price to warrants can not only stabilize the financial market but also really embody"value decides price"and make a reasonable marketable investment. In common, the usual methods of warrants pricing include: B-S model, binominal option pricing model and Monte Carlo imitating model.Firstly, the article briefly introduces the warrants, which includes: the concept, the factors and the types of warrants, also the comparisons between warrants and other financial tools. Then it elaborates the investment risk and economy function of warrants. This part establishes a basis for the whole article. Secondly, the article analyzes the background and present situation of Chinese warrants. Its contents include: The development state of warrants in USA, Europe, Hong Kong and Taiwan; correspondingly it analyzes the background and current situation of Chinese warrants to seek the development track of warrants market. Thirdly, the article takes twenty-four warrants as the object in the Chinese warrants market, then analyzes the pricing of Chinese warrants products systematically using B-S model and Binominal Pricing Model, to provide a few thoughts to Chinese warrants pricing system. By the fact, we find that the pricing system is unconsummated of Chinese warrants market and there exists obvious deviation between actual warrants price and theoretical warrants price. Fourthly, the article analyzes the laws and statutes of oversea mature warrants market, in the basis of oversea successful experience, the article explores Chinese warrants laws and correspondingly raise some improved suggestions. Finally, combing current environment and problems of Chinese warrants market, the article brings forward some countermeasures and thoughtful trains. By analyzing the evolutionary warrants and ETF warrants, the article looks into the future development of warrants market.