The Study On Pricing Of Quotient Options

Due to the influence from the development of the information technology and global economy, there displays a massive turbulence in the financial market, which becomes the attention focus for the investors meanwhile. Along with continual innovations from the financial market, investors need to adopt corresponding investment strategies to fulfill value maintenance so as to obtain more profits. Thus, they are able to avoid risks and gain the most profits. Among those strategies, option contract serves as an important role.This thesis mainly makes a research on the pricing problem under various conditions.At the beginning it introduces the research background and actuality, as well as the definition of quotient options and their price formulas in normal form. This thesis gives four kinds of pricing formula for quotient options under various conditions.Fractional Brownian motion is a more vivid way of depicting process of assets pricing.Therefore, Chapter II discusses the pricing formula of quotient options under Fractional Brownian motion. The fluctuation of assets price, in which haphazard jumps could be seen. Such jumps are likely to reflect the arrival of new information. Chapter III analyzes the pricing formula of quotient options under the underlying assets price obeying the jump-diffusion model. Due to the interest rates in real market being uncertain constants,aiming at assets price model approaching reality, Chapter IV gives the pricing of quotient options when risk-free interest rates are about time functions and stochastic interest rates.