Research On The Application Of OTC Option In The Design Of Gold-linked Financial Products

With the development of China's financial market,there is an increasing number of financial institutions beginning to frequently get involved in the financial derivatives market,making the general application of derivatives the potential high ground of market competition in the future.Based on studying the application of over-the-counter options,this thesis first discusses the current status of China's financial market and wealth management market,and then proposes the breakeven financial product with the gold-linked OTC options.Structured gold financial products are divided into two parts:First,the floating profits,namely how to create call options on gold,get target profits and avoid adverse losses;second,the fixed income,namely to compensate the fixed "expenses" of call options on gold.The external purchase with high cost is available to create call options on gold,however,the market risk can be transferred correspondingly.Also,you can copy OTC options,and on the condition that the naked option position is not hedged in domestic Stock Exchange,the market generally adopts dynamic hedging strategies by using Delta to calculate linear assets and Greek alphabets to detect how to reduce copy error on which they discuss.Further it examines the performance of guaranteed loss and floating return,and evaluates the advantages and disadvantages as well as the living environment of such type of product.Such type of product in the domestic market should have a great application value,as reflected in the expected long-term bullish gold and the passive tracking ability of OTC options.Nowadays,in the process of virtual economy serving the real economy,the innovative mechanism and the general application of OTC options and other tools will contribute to the social construction.