Abstract: Since different kinds of warrants price models exist,this paper chooses two of them:B-S model and CSR model as the starting point to research the optimal warrants pricing model in Chinese warrants market. Using the 15 warrants in the state of transaction listed on the China's two bourses as samples; this paper makes detailed analysis and comparisons of the pricing ability for these two models. The pricing results show that B-S model is more appropriate to Chinese warrants market,and the warrant is seriously overpriced in China. There is a strong manipulation in the market. Based on some special institutional mechanism,we use "resale options" theory to study the reasons for such manipulation,andpropose some policy suggestions in the end.

Key words: warrant pricing, B-S model, CSR model