Research And Practice On Warrant Investment Analysis

Because of the property of high-risk and high-yield, and the trading mechanism of T+0, warrants have attracted a large number of traders and are traded actively in recent years. With the developing of financial markets, derivatives, such as options on stocks and stock indices, will appear gradually in our country. Analyzing and recognizing warrants can help to know options and futures better and to develop the derivatives markets.In the research on warrant pricing, the prices of underlying stocks are considered as stochastic variables. Pricing is on the base of statistics and stochastic analysis. Because the causes of the price change of underlying stocks are not explained in the pricing, it cannot meet the requirements of investors. In addition, from the aspect of understanding things, researching the causes of price changing is more meaningful than considering the changes of stock prices as stochastic variables.By means of analyzing the causes of price changing, the paper wants to supply warrant investors with proper analytical frameworks and methods, and to help them to invest rationally.The paper researches on investment analysis of warrants and attempts to answer two questions: How to do investment analysis and how to invest according to the result of analysis. Referring to research findings of predecessors and considering various aspects of warrant investment, the paper establishes the framework of warrant investment analysis. The paper also creates the quantificational criterion of influence factors and qualifies the analytical results in the help of the analytic hierarchy process and fuzzy comprehensive evaluation. According to sub-part and synthesis quantificational results, investment strategies can be constituted.The paper has two innovations: 1) Establishing frameworks of investment analysis and indexing investment analysis. 2) Establishing the quantificational criterion of investment analysis.