Three-stage pricing model of credit guarantee with governmental participation

Credit guarantee financing has become the significant method for the financing of enterprise. At present, the main mode of pricing is based on experience, single-stage option pricing or two-stage option pricing in which the governmental factor is ignored yet. In terms of the significant role played by the government in the credit guarantee, a three-stage pricing model of credit guarantee with the governmental participation is put forward in this paper after proposing the guarantee mechanism with governmental participation, together with the theoretical expression of the guarantee fee and the simulation calculation example. Moreover the setting problems with the parameters and variables in the model, which positively guide the developing of governmental work and drawing of the policy, are discussed in this paper as well.