Normal jump diffusion model of foreign exchange option pricing

In order to solve the normal jump diffusion motion process model of foreign exchange option pricing problem, this paper constructed the corresponding normal jump diffusion model with the condition of foreign exchange rate relative hto leap to logarithmic binomial distribution the movement. Using the risk neutral measure principle, It? formula and Girsanov theorem of promotion methods, the characterization of currency options to buy right pricing formula was obtained. Then using parity formula of currency options being bullish-bearish, the prepayments currency options pricing formula was derived. The research results contributed to the development and improvement of the currency options market and foreign exchange option pricing theory.