The Study Of Option Pricing Model With The Random Item

As the important cornerstone of option pricing equation, in 1973, Myron Samuel Scholes and Fischer Black option the pricing formula. The famous BlackScholes option pricing model, and then, there are a lot of financial scholars on the basis of this, weaken the original assumptions to deduce the option pricing model,such as: fragile options, credit options, and so on. This model is the hypothesis that the market is completed, namely in the world of risk neutral. With the development of economy, option pricing equation and the common development of financial markets.Firstly, the background, the research status of nuclear reasonable pricing options and get some basic theoretical knowledge of option pricing equation are introduced. In this part, this paper introduces the Brown movement and o It? integral,the two theory is the starting point of all the option pricing equation, and then gives the derivation process of the classic option pricing equation and the fragile option pricing equation.Then, we introduce the equation and vulnerable of the option pricing equation model. This paper studies the option pricing model with the random items and given the market possibilities. Then we study the four kinds of models : the classical pricing model with random item, the option pricing model with random item, in the presence of junk bond option pricing model and fragile option pricing model with random item. And then,we emphasis the option pricing model with random item, in the presence of junk bond option pricing model, fragile option pricing model with random item,then deduce the theoretical solution.Finally,we make the numerical simulation to the option pricing model with the random item, and analyze the error between the numerical solution and the true solution. To the option pricing model,we convert it into a three-dimensional equation, and then their difference solving format were given.