Research on the Black-Scholes Stock Put Option Model Based on Dynamic Investment Strategy

Based on the Black-Scholes option pricing theory , this paper considers the investors´ behavior of keeping away risk and the Investment strategy of reducing the lost when building the put option model. The investors can reduce risk through selling stocks while the stock price droping .Using the case, it is shows that in order to keep away the same risk, the price of the option based on the investment strategy pricing model is lower than the put option based on the standard Black-Scholes put option pricing model.