An Empirical Study On The Pricing Of Foreign Exchange Structural Financial Products

With the sustained development of China's economy and the overall increase of per capita income,people's demand for financial products is increasing.With the reform of financial system and the rise of individual foreign exchange holdings,more and more foreign exchange investors begin to pay attention to the new financial management mode of foreign exchange structured products.There are many kinds of foreign exchange structured products with flexible design terms,which can meet the needs of investors with different risk preferences.This type of financial products has relatively small risks and relatively high returns,so it has been widely praised in the financial market.Therefore,how to evaluate the valuation of foreign exchange structured financial products,how much income can be obtained from purchasing such products,and how to operate the investors involved in foreign exchange financial management to achieve the best return on investment are all worth studying.This paper collects,collates and studies some foreign exchange structured financial products issued since 2003.Through Monte Carlo simulation and other valuation models,the representative products are evaluated and analyzed,and the financial returns of different products are analyzed.This paper can be divided into the following six parts: The first part introduces the research background and the connotation of the topic,analyses the relevant literature,and expounds the research route and possible innovations.The second part is the theoretical basis of pricing foreign exchange structured financial products.Firstly,thedefinition and classification of foreign exchange structured financial products are briefly introduced.Secondly,the pricing characteristics of products are described.Finally,the theoretical models of product pricing are analyzed,including Blake-Scholes model,binary tree model and Monte Carlo method.The third part analyses the reality of foreign exchange structured financial products in China.From the following aspects,this paper studies the linked,path and dual-currency financial products.The fourth part is the empirical analysis of the pricing of China's linked foreign exchange structured financial products.According to the analysis results of the third part,this paper chooses representative products and makes an example test on their pricing.The fifth part puts forward relevant policy recommendations for commercial banks,key product pricing and investors.The sixth part is the summary and prospect.