Research on Option Pricing of Convertible Bonds

The world's convertible bonds are mainly concentrated in the United States, Europe, Japan and other developed financial markets. Convertible bonds can effectively promote the prosperity of a region's financial market and enhance the competitiveness of enterprises. However, at present, convertible bonds in China's financial market are not mature yet, many investors lack the knowledge about convertible bonds pricing theory and risk scale. In order to explain the structure of convertible bonds more simply, this paper analysis dismantled convertible bonds through the change of parameters on the basis of Qiyuan Zhou's paper.