Foreign Exchange Structured Products Valuation And Yield Research

As the rapid increase of national foreign exchange reserve and the growing demand for domestic foreign exchange investment, foreign exchange structured deposits, which is characterized by its high flexibility and high yield, is gradually becoming a hot choice for foreign exchange investors. Although our domestic banking has developed a lot, we can still see the gap between ours and foreign one. Especially the proportion of intermediate service to general income is much smaller than that of foreign ones. Consequently, developing intermediate service is an important task for domestic banks. And as one of the main products of intermediate service, foreign exchange structured deposits is the key to the development.After collecting, settling and analyzing the data of all the structured deposits issuing by bank of China since 2002, the text tries to use the famous pricing model, both at home and abroad, including EASYFIT, BLACK-SCHOLES and Binomial Trees, to figure out the academic value. Moreover, through a detailed comparison and analysis on the profit of the structured deposits, the text raise and make a solusion to the problems, such as how to price the structured deposits, the profit level of the structured deposits which issued by Bank of China, what way should Bank of China take to make a promotion on the foreign exchange structured deposits, and how should the investors invest in the foreign exchange structured deposits.The first chapter of the text is the instruction about the study's background and relative researches, pointing out the significance of foreign exchange structured deposits and also makes some questions.The Second chapter makes a simple overview of foreign exchange structured deposits, including its definition, classification and the market. This chapter also mentions about the pricing models, making the basis of following analysis.On the basis of chapter two, the third chapter applies the different pricing principle to the different classified deposit products issued by Bank of China, and figure out the academic value.Chapter four makes a deeply analysis on the profit of structured deposits, comparing different profit rate with different types and fixed deposit, getting a more comprehensive conclusion and risk research.Chapter five is the last part of this paper, pointing out and solving the problems of foreign exchange structured deposits in Bank of China.