Modification of the Warrants Pricing Model and Validation Analysis

  •  Jinlong Chen    
  •  Qinhong Li    


Based on the previous study in this article, modified Black-Sholes model was more  suitable for the domestic warrants price, and calculated 6 warrants’ price in the listed time, It also confirmed the rationality of the model comparing the pricing theory with the actual market price. The result of the computation of the modified warrant price model shows that though in the warrant market the realistic price deviates from theoretical price, the deviations of realistic and theoretical prices is smaller from May, 2006 to May, 2007.

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