Based On The Different Demand Of Sfp -m Product Design And Pricing Research

Structured financial product originated in the United States, booming in China in recent years. Due to the characteristics of capital preservation and extra income, structured financial product has been beloved by investors and has also become the research object of financial institutions, academia. However, in China the demand of structural financial product is not vigorous,because the product may have some defects such as unreasonable design, over-pricing,etc. The shortcomings are firstly manifested in that the structured financial product has many defects in unreasonable designing and deviate from the real demand, secondly in that the product is overpriced which make the inverstors endure more risk. Therefore, in the questionable structured financial product market, researching on product design and pricing, will be the effective guidance for investors and financial institutions.Combined with the characteristics of structured financial product, this article firstly researching the history of structured financial product in foreign countries, to study the law of development. Secondly, we review the history of the development of structured financial product in China and focuses on the type of structured financial product in China. Through market research, we find that the products’principal and risky type deviate from the investors’demand. Finally, we study on the defects of Chinese structural financial product. An empirical study of structured financial product linked with multi-asset shows that the actual income of such products do not achieve the desired level, and also do not play the function of the "financial".This phemomenon is due to the unreasonable design, so we study on the design.In order to improving the defects of structured financial product in China, fully achieving the function of financial product, enhancing the innovation ability of financial institutions, and meetting the needs of investors at different levels, we introduce the design theory of structured financial product in Chinese market, and design the structured financial product linked with multi-assets. Firstly, we design the questionnaire to understand the market demand. Then according to the structural characteristics of structured financial product, we design the three elements. Finally, we give the design results, and product evaluation.To solve the pricing deviation, we study on the pricing of the product.In order to price the product accuratly, We firstly use the traditional Monte Carlo simulation on the pricing of structured financial product linked with multi-assets. The traditional method’s empirical result shows that the real price of "Tongsheng15" is highly evaluated. Traditional methods can be a very good way of pricing the complex options, but it ignore the time-varying volatility. Therefore, to improve the deficiencies of the traditional pricing method, we introduce a new pricing method. The new method’s empirical result is consistent with the traditional method, and more relevant to reality, so it can be a better way in the pricing of complex product.