The Nature Of The Options, Research And Human Capital Options

The options trade already existed for hundreds of years; however, the theory of options has just been developed in the recent half century. The Black-Scholes options pricing model has established the basis of the options pricing theory. From then on, the idea of options has not only been applied in Finance, but also promoted the objective options theories. Moreover, it is now widely used in broad fields of economic society. The article analyzed the character of options and finds its essence, that the options is the probable request for the property of the goods. Thus we come to know how the options works: The options trade guarantees the buyer of the options minimize his cost and avoid risk while keeps the right of gaining profit when he expects receiving large amount of profit; At the same time, the options trade also makes the seller of the options maximize his profit when he expects a little risk. After this, the article shows the current situation of the human resource investment in China. The main problem is the companies don't invest enough capital on human resource, only because there isn't a proper mechanism that can both promote the company to invest and lower the probability of their risk. The idea of options seems to be the key to solve such problem. The article raises the example that the company invests on the options of human capital that belongs to the poor college student who can't afford the school fees. Through the example, it tries to design a kind of human capital options-investment mechanism, which could well promote the company invest on human capital. In such mechanism, the pricing of the premium is the key. The last part of the article applies the Black-Scholes options pricing model to price the premium of the human capital options. As the result, it moves forward to prove the function of the human capital options investment mechanism.The article raises a totally new investment model, the human capital options investment model. It not only lowers the risk of the investor, but also maximizes the profit of the owner of the human capital. Establishing the human capital options investment mechanism could also solve the exogenous problem of the human capital, allocate the resource effectively, and promote the employment, etc. The other original...