Option-pricing of Completeness Market and the Choice of Hedging-trade Strategies

This article is based on the existence of an arbitrage about a portfolio in an disequilbrium market under the supposition of the stochastic market. The authors defined the T option priee equilibrium price, and illuminated these definitions at first. With the knowledge of stochastic analysis, it is demonstrated that the price of European put option equals its callo ption. They both equal equilibrium price. In addition, under the same supposition, it is discussed that the choice of hedging trade planning, got the formula of hedging trading.A example to show how to use the formula.     

Model and Computation of Reload Stock Options with Barriers

Reload stock option is proposed as a executive stock option plan having some drawbacks, and prove that it is necessary to treat the reload option as a barrier option with two barriers. The improved reload option pricing model is established which the long incentive and reload feture of executive stock option are included. The pricing formula of the new option and the simulation analysis of it are discussed.     

Real Option Method in Real Estate Investment Decision

Through analysis of basic assumptions and limitations of the conventional real estate investment decision method, in this paper, its unconformity to the investment environment, which includes a great number of uncertain elements, is pointed out. By analyzing the real option and the price formula, the pattern of real option in real estate investment decision is put forward and this breaks through the limitations of the conventional investment decision method and makes the decision scientifically and reasonably, moreover, it has some directive significance to investment administration work of real estate corporation.     

The Differential Scheme of Pricing for American Put Options

Based on the differential scheme,presents a numerical method of pricing for American put options.Firstly,the partial differential equation satisfied by the option price is transformed into a series of differential equations.Then,these differential equations are solved by the iterative method.The numerical method includes the implicit finite difference method and the explicit finite difference method and these two methods are compared.Finally,a numerical example is given and the validity of the algorithm is checked by a series of experiments.Some useful results are obtained for its application in the option markets.     

Pricing Ways of Risky Investment Projects

Three ways are used to study the pricing ways of risky investment projects, namely discounting way of the end value, discounting way of cash flow and option pricing way. An example is given to study the practical use of the three ways which have different characteristics and constrained conditions. Compared with each other, it is found that option pricing way has a distinguished advantage, since this way involves the effect of the uncertainty of the value of enterprises on the value of equity, and solves the problem of the low valuation of the value of enterprises caused by the fact that the return of the first years is less than the return of the later years. At the same time, the effect of the change of capital structure on the value of equity is taken into account. Anyway, in some sides the three ways have the similar difficulties.     

The Real Option Method of Real Estate Exploitation Evaluation

Real estate exploitations have high risk and its exploitation environment is quite uncertain. The traditional investment value methods, such as the net present value and discount cash flow methods, usually undervalue the real estate value. In this paper the real option pricing theories and methods are applied to discuss real estate investment value under uncertainty. This method provides a new approach for real estate items.     

Real Option Analysis of the Underpricing of IPO

The underpricing of initial public offering(IPO) has been one of the "the new issue puzzles" in the finance.The paper studes the underpricing of IPO phenomenon by real option methods.The research find that even the information of stock market is symmetry,the underpricing of IPO is inevitable.With the development of stock market,the(degree) of the underpricing of IPO will be lowed.The reasons of underpricing of the IPO in Chinese stock market,on the one hand come from widespread existing IPO underpricing,and on the other hand,come from the irrationality of IPO pricing way and stocks is not all circulate.     

The Problem of Real Option and Its Frontier Commentary

The method of real option has already become an important tool in the fields of enterprises value evaluation, company finance, strategy investment management, investment decision, finance analysis, corporation merger and acquisition and so on. But there is a lot of problems in both theory and practical application for the method of real option. This article will analyze the research frontier problem of real option and indicate the further research direction.     

Electricity Pricing Regulation in Demand Side Management

Time of use(Tou) price is one of the most efficient measure for modern demand side management(DSM).But a scientifically pricing is based on understanding the function of pricing mechanism and comprehensive analysis to social benefit.The authors develop a pricing model by game theory based on analysis of consumer's response to the time of-use price and analyze the pricing regulation of government for maximum social benefit.A conclusion is drawn,which suggests that government should let the electricity corporation to pricing, but just give a regulation on the average price level.     

Comparatively Research of Methods of Electricity Pricing at Transitional Period in China

With the reform toward power market processing, how to decide electricity price becomes a key problem which one power plant have to face. So in this paper, the authors show two ways to the problem, a pricing model by account and a pricing model by economics, then they analyze the cost structure and counting principle of three-electricity price, which is determined by the methods of repayment of capital with interest (RCI pricing), of the operation period (OP pricing) and of marginal cost (MC pricing). Then similarities and differences among these three pricing methods existing in the transitional period are examined by a case in china. The indicate that it is important and inevitable to reform RCI pricing, to popularize OP pricing and to transfer to MC pricing.     

关于科学构建中国原料奶定价机制的探讨

针对中国原料奶价格不断波动的情况,本研究集中探讨了美国、日本、欧盟以及国内的上海和黑龙江在原料奶定价机制方面的做法和经验,认为中国的原料奶定价机制的构建应该以政府主导制定生产计划;建立按质定价体系;做好成本调查、监测预警和监督检查等工作。     

Construction and Realization of Gradually Approaching Algorithm on Pricing American Put Options

The American put valuation problem is very important and complicated in the Option Pricing Theory (OPT), and so far the appropriate continuous-time pricing model and compact valuation formula for the American put option have not been found. On the basis of the research works of many scholars such as Black, scholes, Parkinson, Brennan, Schwartz, Rendleman, Bartter, Cox, Ross and Rubinstein etc., making use of the notion of limitation and the binomial approach, this paper constructs and realizes gradually approaching algorithm of pricing American put options. Its reasonability, convergence and validity are tested by computer programming. The results show that this algorithm can effectively resolve the American put valuation problem.     

Two Formulas of Debt Valuation About risky Enterprise with Contingent Claims Analysis and Comparison

Risky debt valuation differs greatly from that of no risk so that under uncertainty of income flower and discount rate, usually we can not get a kind of resonlution to express the type. With no account of the discount rate, we are absorbed in property value influence under uncertainty. As generalizing the theory of option pricing, contingent claims analysis can handel debt valuation, and sometime give closed form expressions.Two formula obtained by Merton and Black&Cox, are Compared and different conditions are discussed. At last, some comment on formula of debt valuation is given.     

Investigation on Option and Technology Innovation in Decision-Making of Project Investment

By the analysis of the traditional decision-making on project investment, its three difficulties have been found and the assumptions on base of the decision-making are presented. Starting from the assumption, the theory of option and the theory of technology innovation were introduced to revise the traditional decision-making and to endow it with new significance. As a result, the accurate and proper information could be offered to the decision-maker in time.     

Analysis on Price Competition and Regulation Policy in Partial Monopoly Market

Partial monopoly market structure in reform. Based on nondiscriminatory pricing , the and the effect of price cap regulation policy. some infrastructure paper analyzes the industry will exist for a long period after deregulation behavior of price competition in new market structure     

集体林地使用权流转收益的理论与实证研究——以福建省邵武市为例

林地使用权流转收益是否合理,关系到流转权益各方的切身利益与林权制度改革配套措施建设成效。借助相关基础数据与理论模型,分析2000—2011年度福建邵武市不同立地质量的林地使用权理论流转收益,认为木材价格的不断上涨及政府的政策性税改让利是理论流转收益不断攀升的主要原因。研究发现,闽政文[2005]50号及南委[2007]37号文件规定的林地使用权价格明显低于林地理论流转收益,林农及基层经济组织并不能共享土地经营权流转剩余收益;延平区政府的林地定价在一定程度上可以作为邵武市林地流转的价格依据及政府制定流转政策的价格参照。创新林地使用权流转价格形成机制是合理调配权益各方利益争端,实现利润共享的必然选择。     

Research on the Effectiveness of the Direct Regulation Pricing Methods of Public Utility

This paper analyzes the industrial organization of public utility and its cause and synthetically researches government direct regulating pricing methods of public utility, mostly the static or dynamic cost mark-up pricing methods. It is indicated by the means of game theory and imperfect contract theory, under the conditions of imperfect information and the government's inferior position, It's impossible to develop the incentive mechanism to utility enterprise, makes low productivity in public utility. The inefficiency of the cost monitor and control is inevitable when the direct regulation pricing system be used. The thought of direct pricing methods is a mechanical obstruction to improve the effectiveness of public utility. It's the radical approach for the government to reform the regulation modes in order to improve the effectiveness and social surplus of public utility.     

An Analysis of Impacts of Financial Engineering on Corporate Capital Structure

After reviewing the capital structure theories briefly,the paper researches the impact of financial engineering on corporate capital structure .The model analysis shows that financial engineering can decrease the cost of capital, then improve the financing capacity and effect the rate of debt.Executive Stock option improves managerial incentives and is a challenge to capital structure managerial incentives theory.     

农业上市公司审计定价影响因素的实证分析

选择农业上市公司2001年至2008年作为数据窗口,共216混合样本,对影响农业上市公司审计定价的内外部因素进行理论分析和实证检验。研究结果表明：公司总资产规模和董事会规模是影响农业事实上公司审计定价的主要因素,公司总资产规模和董事会规模越大,审计定价越高;公司经营业务种类越多、负债水平越高,审计定价越高。会计师事务所特征和地区外部治理环境也是影响审计定价的重要因素,综合评价排名居前、审计质量高的事务所审计定价较高;农业上市公司所处地区的市场化程度越高,审计定价越高,地区法治化水平越高,审计定价越低。根据研究结论,本文提出相关对策建议。     

Supply Chain Coordination for Perishable Product with Dynamic Pricing Policy

Perishable products need to be sold up before a fix time which is usually called product's lifetime.As the salvage of perished products is almost zero,and the demand is uncertainty,retailers usually set the product's price dynamically to influence the demand.When retailer's dynamic pricing policy is considered,we wonder which contracts can realize the supply chain coordination.Three typical contracts-return contract,price discount contract and revenue sharing contract are analyzed.Only revenue sharing contract among the three can realize supply chain coordination under dynamic pricing policy.The extension of price discount policy quantity-price discount policy,can also realize supply chain coordination under dynamic pricing policy.