Pricing On A Type Of Trigger Bank Financial Products

As the sustained growth of the economic in China, people have more and more wealth, low-income bank deposits have been unable to meet people's needs, more investment channels begun to be concerned about. In this context, bank introduced a variety of personal financial products, large amounts of funds in this area began flocking.Trigger-financial products is a type of bank financing products, It set up one or more trigger price. We will be stipulated in the agreement proceeds When price fluctuations to trigger price or touch the trigger for the price. It includes two cases, the first, set a trigger price, when the products reach the trigger price, we have an agreement proceeds. The second is to set up a price range, If the price stability in the interval, doesn't touch the price range, access to the agreement proceeds.This paper summarized and categorized the type of trigger financing products, and took a few classic cases as a basis for our research. Application of the theory, we analysis Its pricing. In some of the assumptions, using the theories of Black-Scholes option pricing andhedging thinking skills, through methods for partial differential equations, we can get the pricing formula of the trigger financial products. This article includes: Chapter one: Introduction, in this chapter specified the background and significance of the research, and descript the literatures have been studied. Chapter two: In this chapter, introduced the concept of the financial products, banks and financial products is now done with a number of summary. Chapter three: In this chapter, we have given out a mathematical model for triggering products in a subcategory and equations to solve. Chapter fore: In this chapter, we have given out mathematical model for triggering products of another type, and from many angles using different methods to solve them. Chapter five: In this paper, we did a simple summary.Through this research, It referenced for designing the bank financial products and the bank's risk management, and also for the investing of investors. In theory, it can develop the bank financial market.