| Nowadays the pace of marketization of RMB is accelerating,and the proportion of triggered structured products with exchange rate as the underlying assets will continue to expand in the financial market.However,the design of some exchange rate-linked financial products in the current market is conservative,and financial products with low risk and low return characteristics account for the vast majority and cannot meet the needs of riskappropriate investors,especially high-net-worth investors.High-net-worth investors are more willing to buy high-risk,high-yield financial products because of higher risk tolerance.This paper adjusts the structure and parameters based on the existing structural foreign exchange financial product design.We selected the exchange rate of EURUSD and USDCNY as the underlying asset,and designed a financial product—“huizhongchuangying” linked double exchange rate for high-net-worth customers.The funds are allocated in fixed income securities and options in a reasonable proportion.This paper analyzes carefully and calculates reasonably that the maximum loss of the product is within the customer’s tolerance.The fixed-income securities part purchases securities with high credit rating;the option part buys a knock-in option with the exchange rate of EURUSD and USDCNY.Each of these barrier options achieves different benefits by designing two trigger levels.This paper runs through the principles of safety and profitability in product design,controlling risk and maximizing the benefits for customers.Based on the elements of exchange-linked structured wealth management products,this paper analyzes the necessity and improvement direction of the product design of “Huizhongchuangying” according to the existing problems of existing financial products.Then,from the perspective of product elements,the design of the linked double exchange rate structured financial products is focused on the core structure of the product double exchange rate double trigger level.The BSGK model and the Monte Carlo simulation method are used to price the options.Considering the complexity of the structure of the product,this article compares the benefits of the product from various dimensions,and use RAROC indicators to compare and analyze the same type of products,trying to provide a clearer understanding of the buyers and sellers of financial products.We can see that “Huizhongchuangying” has higher returns at the same risk level,and provides higher yields for high-net-worth investors under the premise of controlling risks.This paper uses GARCH model to predict exchange rate volatility,focusing on assessing the exchange rate risk of products.After careful calculation,the design of “Huizhongchuangying” is more reasonable,and various risks are basically controllable.This paper has certain novelty in the structural design and trigger level of financial products,and provides new ideas and possible development directions for the design and development of financial products. |
