The Two Risky Assets Options Pricing Based On Dividents

Options pricing is famous in the financial study, but most of options pricing are discussed under the assumption of the complete markets. In this paper, we will research the two risky assets options pricing issues based on dividends, in particular discrete dividends. In practice, the underlying assets on dividends are paid by the way of discrete, so this study has practical significance.In 1978, Margrabe first gave a closed solution of the exchange options pricing with Euler's formula, but this method is very specific.In this paper,we give the exchange options pricing of closed solutions with the units of conversion and the method of no-arbitrage hedge options,and get the same conclusion. Separately with the underlying assets paying continuous dividends and discrete dividends,the exchange options pricing will be discussed.The no-arbitrage options pricing methods to hedge discussion will be used the exchange option pricing with contious dividends,but underlying assets of discrete dividends payments in exchange options pricing, Dai and Lyuu single discrete dividends paying assets of the techniques will be used in research on the exchange options pricing using the method of unit conversion price, eventually be the subject of discrete dividends paying assets of the exchange options pricing formula.Finally this paper to solve a similar exchange options pricing methods,the discussion of the underlying asset,respectively, continuous and discrete dividends payment of outer performance and better-of options.This paper has four parts: in the first chapter,the problem of option pricing and the history of the development are presented,the main tasks of this article are introduced; in the second chapter,some prepared knowledge would be introduced;in the third chapter,we obtain European exchange options pricing formula with non-dividend-paying by the method of no-arbitrage hedging,and get exchange options pricing formula with dividends;in the fourth chapter,we will give conditions for the options pricing formula outer performance and better-of options.