Analysis on How to Deal with Grain Futures Options within China

Abstract

A kind of financial derivative named Option is one of the greatest invention of Man-kinds in the field of Finance, which can secure the profits and returns of investors, traders and producers with lower cost basis .Certainly, the Grain Futures Options are able to benefit farmers, relevant producers and traders, furthermore pushing the Real Economy of one country into the process of benign cycle. However, up to now, we can not find the related tradings and platforms within China. By viewing and introducing the transaction of Grain Futures Options in the developed countries, the paper analyzed how to price and deal with this kind of financial derivative. The author hopes the paper will make contributions to changing the development of China′s agricultural production for the better, furthermore enriching varieties of China′s financial markets.