Pricing of financial options on interest rates changes in the Damascus Securities Exchange

الملخص

The concept of financial Derivatives in general and the subject of the options in particular have great interest by the researchers, where the options are the best financial instruments in the term of adopting different strategies that aim to avoid the portfolio from financial risks. Therefore ther have many been models used to evaluate the options and to determine the value of the reward which can be obtained by counterparty, so the Black – Scholes model is still the most commonly used .This paper has been prepared to discover the options contracts, as well as to recognize the Black and Scholes options model that is used in financial options pricing ,through showing the most important Hypotheses on which it adopts and how to use it to determine the rewarded value of the options. Then we have applied on the pricing of Interest Rates in Syrian banking sector options. We conclude that the purchasing contract must be equal to the rewarded value for each bank. If the contracts price in the market is higher than that it means then it’s an overpricing but if it is lower than, that it’s a low price.