A NEW KIND OF METHOD FOR OPTIONS PRICING BASED ON THE PARTIAL DISTRIBUTION

摘要

This paper is intended to present a new kind of model (DF structure model) for options pricing based on the Partial Distribution and DF-process, which is universal applicable to American and European options. And the definition and analytic expression of DF-process and DF-structure are put forward. The analytic formulas for American call option and put option valuing are given. Compared with Black-Scholes pricing formulas, the DF structure pricing formulas are not only of availability, but also of more practicality.