Problem Research Of Option Contract In Agricultural Supply Chain

As the concept of scientific development and harmonious society are deepening, the "three rural" has drawn increasing attention from all social circles, has become the focus of solved urgent national development problems. The study of agricultural supply chain is not only a hot spot of study at home and abroad, but also contributes to solve the "three rural" issues.Recent years, with the rapid development of China's agricultural economy, a new trading pattern of agricultural industrialization-contract trading of agricultural products supply chain is produced in the development process of agricultural restructuring, oriented into the market and the industry. China's agricultural industrialization get great development in the "Eleventh Five-Year" period. In the view of model type of agricultural industrialization, contract trading of agricultural products supply chain as the main form "company + farmer", has a dominant position. However, in order to further enhance the development of agricultural industrialization, new mode need produce, and study further theoretically, as "company + farmer" transactions default rates are rising.This paper analyses in-depth three basic models and their problems of contract trading of agricultural products supply chain. Combining option theory characteristics of the agricultural products supply chain and in the present development and the characteristics of farmer cooperatives, a new contract trading of agricultural products supply chain "company + farmer cooperatives + farmers + Option + Futures + agriculture-related financial institutions" is put forward.Then, on the basis of this model, the article does the further study of the problems that the agricultural supply chain option contract may encounter from the beginning of the development of option price to the final implementation of option contracts.In the option pricing of the option contract, this article introduces the classic Black-Scholes option pricing model first. After a simple derivation of this model, the Black-Scholes option pricing model was used to do a case study of cotton supply chain option contract. Then on the basis of the Black-Scholes European call option pricing model in the mixed fractional Brownian motion, this article develops the Black-Scholes European option pricing model in the mixed fractional Brownian motion and the Black-Scholes European option pricing model in the fractional Brownian motion. Then both of the models are used to do a case study in the same cotton supply chain option contract model. By comparing, the application of the B-S European option pricing model in the fractional Brownian motion and the classic B-S option pricing model in the agricultural supply chain option contract are more suitable.In the analysis of the problems that the final implementation of agricultural supply chain option contract may encounter, this article introduces the idea of Game Theory. By using the dynamic game between farmers and farmer professional cooperatives and the dynamic game between farmer professional cooperatives and company to analyzing the problems that the final implementation of agricultural supply chain option contract may encounter this article further verifies the feasibility of the model of "company + professional cooperative of farmers + farmer + Option + Futures + agriculture-related financial institutions " which gives the theoretical basis for further promotion of the mode in agricultural products supply chain option contract.Finally, summarized the Whole article and combined the current development of agricultural supply chain contract transactions with the development of option theory, this article gives options to further research of option contract in Agricultural supply chain.