Application of AHP in risk monitor of financial derivative instrument based on MATLAB

The global economic was attacked with Financial Tsunami, and is still in great turmoil today. The major causes must include over-expansion of financial derivative instrument. The nature of financial derivative instrument is positive. According to the existing theories, systematic risk monitor indexes are built and transferred into layer-structured model of AHP by certain intrinsic mechanism, and moreover, the weight of each index can be obtained by AHP algorithm. Then the significance of each index is determined and the key indexes can be selected as the most important aspects of financial derivative instrument. It is proved to be practical and feasible. This application can warn the incoming danger of financial derivative instrument in time and minimize the threat of financial derivative instrument.