China's Development Of Stock Index Options

1. Background of subject selectingStock index option is an option form based on stock index. In the past 20 to 30 years, derivative instruments with stock index as their underlying objects made an amazing development both at financial markets of developed countries and some new markets around the world. With the deepening of China's capital market, innovation of financial product is an imperative work. Index option as one of the mature product of financial innovation in developed capital market has been proved beneficial to the economic growth. So this article analyze the index option in detail and conclude that it is necessary and practical to develop index option.To develop our own stock index derivatives market is of very importance to averting market system risks, protecting investors' interest, enriching investing instruments, developing institution investor.2. Basic thought and logical structureIn chapter one, this paper is a brief introduction of stock index option. It expounds some elementary questions about stock index option, including its origin and development, the situation about the global market of stock index option at present, the use of stock index option in China.The second chapter discusses the necessary and possibility of releasing stock index option. I point out that it is practical for China to trade stock index option soon based on the analysis of the current situation of the Chinese securities market and Chinese law compared to the situation of other countries at the time they began to trade stock index options.The third chapter is the core of the whole text. On the basis of research on the stock index option's traits and functions and learning of...