The Design And Analysis Of Principal Guaranteed Structured Product Linked To 50ETF Index

As the trading volume of stock market in China become bigger and bigger, the yield and volatility of stock market is getting higher and higher which attracts more and more investors' participation and interesting.At the same time, some investors with limited fund, low risk tolerance and less investment experience still want to benefit from the volatility of stock market. They need one suitable product issued by professional institution to help them to get the benefit within limited risk. Thus, this paper is to design a principal guaranteed structured product linked to 50 ETF index, especially, this product contains 2 selection, one is to long the stock market, and another is to short which gives investors right to choose base on their views on market future.This paper practically provides a complete application to product design, pricing, and then do the utility analysis for investors and the risk hedging strategy analysis for product distributor.In additionally, this paper systematically introduces the development and status nowadays of structured financial products both domestics and abroad, especially from the angle of participants analysis to introduce domestic structured financial products development, which is helpful for structured product issuers to do the design innovation.