Study on Option Price Model of the Transaction of Information Commodities

Changping HU, Xianjun QI

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DOI: 10.4236/jssm.2009.24047                

Abstract

The option is viewed as an important tool of setting price in accordance with objective benefits and actual effectiveness of information commodities, as ensures that the holder of the option right acquires more benefits in the favorable market and reduces losses in the adverse market. And the information market, as a kind of typical monopolistic and com-petitive market, is especially adequate for introducing the option theory to set more reasonable price and further to improve the operational efficiency of information market. Hence, it is quite necessary to apply the option theory to the transaction of information commodities. In this paper, after analyzing the applicability of the option theory to the in-formation market and studying the option price of information commodities, the authors put forward the option price model of the transaction, followed by a case study to demonstrate the validity of the model.

Keywords

Information Commodities, Market Mechanism, Option Pricing, Transaction Model

Conflicts of Interest

The authors declare no conflicts of interest.

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