Research On P2P Interest Rate Pricing Based On Real Option

P2P network lending is the inevitable product of the combination of Internet technology and economic development.It is a great significance to China's economic development.However,with the development of the industry,the risk is also increasing.The fundamental reason is that the P2 P lending rate pricing unreasonable,which led to P2 P platform boss Paolu,closed and difficult to mention and other issues.P2 P platform lending interest rate pricing refers to the P2 P platform for the investor side rate and the borrower for the pricing rate.The traditional P2 P network lending rate is determined by the P2 P platform or P2 P platform and the borrower to negotiate.From the platform's point of view,they hope to develop a higher rate of return to attract investors to invest.From the borrower's point of view,they are not want to pay higher interest rates.From the investor's point of view,the interest rate negotiation process is very opaque,so they can't know the interest rate standards.It will form a contradiction,leading to P2 P platform increased risk.As the P2 P industry,the lack of a unified interest rate standards,resulting in a lot of investors to give up investment because of information asymmetry.So the P2 P platform,borrowers and investors are eager to have a reasonable interest rate pricing method for reference.It is found that the P2 P platform and the borrower use the net present value method or the capital asset pricing model to evaluate the borrowing interest rate.These traditional pricing methods have their own limitations and can not accurately evaluate the investment value of the project.Therefore,this paper explores the introduction of the option theory of P2 P platform lending pricing and empirical.Because of the P2 P industry project has the characteristics of flexible management,large investment uncertainty and irreversible investment,this paper explores the Real Option theory into the P2 P platform pricing research.And it finds that the real option theory is superior Sexuality and applicability in pricing P2 P industry borrowing interest rate.Based on the bilateral market theory,the P2 P platform borrowers and investors were studied separately.The borrower finances through the P2 P platform.It can be divided into two sections: borrowers buy a call options through the P2 P platform and P2 P platform to buy other call option investment.Then,based on the pricing method of real option theory,the Black-Scholes Model is used to analyze the borrowers and investors of the P2 P platform respectively.Finally,the rate is divided into the borrower rate and the investor rate.The theoretical value of the pricing is found.The study finds that the income of the P2 P platform is the borrower's option fee minus the investor's option fee.Finally,the conclusion and suggestions are put forward.