Exchange Rate Linked Structure Financial Management Product Design

Structural financial products refer to financial products that combine fixed income components with financial derivatives through various derivatives such as forwards,futures,and options.Fixed income+various options(or single or multiple),The choice of assets that are linked to the target is also quite extensive-usually one or more of the same or different combinations of gold,various indices,foreign exchange,commodities,stocks,etc..And...In order to satisfy customers 'diversified financial needs with different proportions of income and risk,investors also indirectly participate in various markets such as stock market,bond market,and currency market with less investment principal.The larger number of structured wealth management products issued in 2018 was the exchange rate linked type,which accounted for a relatively large number of wealth management products sold by banks.Since April 2018,under the drastic restructuring of the new regulations on financial management,the number of financial products sold by various commercial banks has shown a negative growth trend and the highest year-on-year decline has reached 22.39%.Fully protected financial products will not become the mainstream of the financial management market And gradually fade,Structured products,with their unique advantages such as the diversity of "low-risk+high-yield" asset portfolios and types,have become transitional products for the conversion of new and old bank wealth management products.At one time,they have become "new pets" for purchase from obscure "supporting roles".The sudden rise became a "hot spot." It fully reflects the unique advantages and good development space of this kind of products under the new financial regulations.Under the huge wealth management market space left after the "success" in 2020,the probability of a large increase in the future may even become the mainstream of the wealth management product market.We should introduce some suitable structural products to meet the diversified financial needs of investors.This paper collates the literature about product design and product pricing at home and abroad.Starting from the basic situation of the exchange rate linked structure products,a three-month range trigger exchange rate linked structure product was designed.The focus is on the process of product design(the calculation of product connotation value uses the differential equation constructed by the B-S model)and the assessment of the product's benefits and risks(using the Monte Carlo simulation method).It is concluded that the product is relatively good for both liquidity and risk,and has certain appeal to investors.Finally,the promotion strategy of the product is briefly described.