The Pricing Of Barrier,Foreign Option

Options have become popular instruments in derivative markets. Unlike reg-ular options, however, knock-out Barrier options expire worthless, or are"knockedout"if the underlying commodity goes through a particular price level. Knock-outoptions are much cheaper to buy than regular options. In this article,we are ableto solve, using martingale approach,equivalent martingale measure and re?ectionprinciples ,the problem of pricing power knock-out barrier option,pricing Bond op-tion underHJM model,Pricing in a jump-di?usion models of foreign bond optionsunderHJMframework.There are three parts in this article , Chapter I Survey, given the history anddevelopment of options and the results of their predecessors. Chapter II is mainlydiscuss pricing power knock-out barrier option, given its pricing formula . ChapterIII is to pricing Bond option underHJM model, given its pricing formula .after this, in the jump-di?usion models to study foreign bond options underHJMframework,presents its pricing formula...