Business Model Innovation And Risk Management Of OTC Options

OTC options play an important role in enterprise risk management by providing personalized solutions for them.This paper will analyze three important business models of OTC options:futures options,"insurance + futures",structured products,mainly through business cases to illustrate the way of operations.Then discusses the risk management of OTC options,using the business case of futures options to explain dynamic Delta hedging operation.The study of business model of OTC options aims to explore a profitable and sustainable way to better meet the urgent needs of many entities,OTC clients to manage risks.The core of business model of OTC options is about risk management.the effect of risk hedging straightly determines the final profit and loss situation.Thus,a well business model along with effective risk management is the key for the development of OTC options market.