A Practice Study Of Warrant Pricing Model In China

Comparatively speaking,warrant products appeared much later in Chinese stock market. In the latter year of 2005, warrant was just introduced to our stock market during the dividing stock structure renform. But,because of the market speculation behavior, warrant price was once seriously deviate form its actual value. So how to price warrant reasonably in China and how to direct investors to evaluate warrant correctly, have becoming a popular research topic in theoretical field. However, the time from warrant introduced in our national financial market was still short and there are only a few systematic studies on warrant pricing, so primary researches on warrat are still focuse on qualitative analysis and the relevant pricing theory remains lacking. Therefore, the research on the pricing of warrant has importat meaning.This paper was just based on the actual status of our securities market,using the Black-Scholes option pricing model in the study for our national warrant. The article compared the theoretical pricing results with the marker price and exhaustively analyzed the difference, then, with the examples of our national warrants, used the revised Black-scholes pricing model in the study. And the conclusion has valuable meanings for the investment decision of investors and for the pricing decision of issuers.