Pricing On Several Foreign Currency Options With A Preset Exchange Rate

1970s，with the collapse of the Bretton Woods system, marking the world from a fixed ex?change rate system into the era of lfoating exchange rates, and accompanied by investment be?tween the countries of the world, increasingly frequent trade, banking and non-banking financialinstitutions increasingly extensive exchanges and cooperation, the exchange rate issue has becomean important issue that people have to consider. But how to protect gains while minimizing ex?change rate risk? foreign exchange options have emerged, and soon became the main financialinstruments about international ifnancial market investment and risk-averse. In order to meet thedifferent needs of different investors or institutions, the type of foreign exchange options have alsobecome more and more.This paper studies the pricing problems of a special foreign exchange options(ie a foreignexchange options with a preset exchange rate), compared with the normal foreign exchangeoptions, it has a preset exchange rate, through predicting the direction and magnitude of changesin exchange rates and compairng the two options’ value, the investors can make a better choicebetween the options with a preset exchange rate or not. To do so，giving investors more investmentchoices. The third and fourth chapters are under the assumptions of the ifnancial markets iscomplete, we get the pricing formula which option with barirer features and reset features, studythe relationship between the option price and the vairous vairables. For the value of the optionunder the complete market can not relfect the market option prices truthfully, many scholarshave done a lot of positive exploration, the iffth chapter is under Lhe assumptions of the financialmarket is incomplete, and get the HJB equation by the theory of stochastic control, then throughthe utility indifference pircing, we get the option prices, obtained through data analysis, we knowthat in the incomplete financial markets, the option price is no longer just about an increasingfunction of the remaining time, and get two factors affect the pirce of an option: the option valueover time of uncertainty and investor attitudes toward irsk.