Advances in Economics, Management and Political Sciences
- The Open Access Proceedings Series for Conferences
Proceedings of the 2023 International Conference on Management Research and Economic Development
Series Vol. 20 , 13 September 2023
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The Formation and Development of Options and Pricing Models
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Abstract
Option, BSM and mean-variance pricing model have always been hot topics in financial statistics, as well as basic concepts to master when learning financial knowledge and engaging in the financial industry. With the increasingly mature theoretical research on financial risk control, many pricing models related to risk control have been established based on BSM model and mean-variance model. Therefore, this paper mainly studies BSM model and mean-variance model. So, this paper mainly discusses the learning achievements of option contract, BSM model and mean-variance model. Firstly, this paper introduces the basic concept of option contract, explains what option contract is, the components of option contract, and the formation history and development process of option and option contract. Secondly, the formation and development process of BSM model and mean-variance model are explained respectively in the work, and related concepts are described and explained rationally. From the historical and realistic point of view, this paper explains the risk avoidance effect of option contract, BSM model and mean-variance model on financial transactions.
Keywords
finance, option contract, BSM model, mean-variance model
References
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Data Availability
The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.
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- Volume Title
- Proceedings of the 2023 International Conference on Management Research and Economic Development
- ISBN (Print)
- 978-1-915371-83-6
- ISBN (Online)
- 978-1-915371-84-3
- Published Date
- 13 September 2023
- Series
- Advances in Economics, Management and Political Sciences
- ISSN (Print)
- 2754-1169
- ISSN (Online)
- 2754-1177
- DOI
- 10.54254/2754-1169/20/20230166
- Copyright
- 13 September 2023
- Open Access
- This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited