Pricing For Some New Reset Options

Options are widely noted and applied as one of the most popular financial derivative instruments. With the development of the financial market, people create exotic options which are new-style and practical. Then pricing problems of exotic options have become one of the hot research of scholars.This paper researches one kind of exotic options- reset options mainly, and we obtain pricing formulas of three kinds of new reset option. We obtain the first new type of reset option when we put a constant barrier on the reset option. It is called the reset option with a constant barrier. And we obtain its pricing formulas. This option reduces the risk which is manipulated easily and expands the result before. We construct the second new reset options by combining reset options, lookback options and barrier options. We obtain the look-back-reset options with barrier. This option has the qualities which the three exotic options have. It is cheaper than look-back-reset options and brings higher returns than barrier options. So compared with other options, it have more market competitiveness. In order to prevent investors to take control of the single asset reset options, we replace the underlying asset of reset options with geometric average of multiple assets. We construct the third new reset options and obtain its pricing formulas.