Since the B-S-M model 1973 was first published in Journalofpo Litical Economy, the traders of Chicago Board Options Exchange immediately realized its importance, and quickly programmed the B-S-M model into the computer and applied it to the newly opened Chicago Board Options Exchange. With the development of computer and communication technology, the application scope of this formula is expanding. Nowadays, the model and some variants have been widely used by option traders, investment banks, financial managers, insurance companies and so on. The expansion of derivatives makes the international financial market more efficient, but it also makes the global market more volatile. The creation of new technologies and new financial instruments has strengthened the interdependence between the market and market participants, not only within one country, but also involving other countries and even many countries. Therefore, the fluctuation or financial crisis of a market or a country is very likely to be quickly transmitted to other countries and even the whole world economy. China's financial system is not perfect and its capital market is not perfect. However, with the deepening of reform and moving closer to internationalization, the capital market will continue to develop, the exchange system will be improved day by day, and enterprises will have more autonomy and face greater risks. Therefore, it is necessary to cultivate financial derivatives to avoid risks, and it is also necessary to develop derivative markets. We just started.