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"Lvyang No.1" Pension Structured Financial Product Design

Posted on:2024-09-17Degree:MasterType:Thesis
Country:ChinaCandidate:J Z LiFull Text:PDF
GTID:2556307124958329Subject:Finance
Abstract/Summary:PDF Full Text Request
In recent years,the aging degree of Chinese population is increasing year by year,and the proportion of old population continues to increase.Pension has become an important issue that the government and society pay attention to.On the contrary,the growth rate of pension as the "first pillar" of pension has been declining for many years in a row,and there may be a situation of exceeding the income in the future.The development of enterprise annuity as the "second pillar" is not perfect.Therefore,in order to better deal with the increasingly severe pension problem,the country has issued a series of policies to encourage and support the development of the "third pillar" pension,including pension financial products.Therefore,in the context of China’s efforts to develop green economy,this paper plans to design a pension structured financial product "Lvyang No.1" based on China Securities Mainland Low Carbon Index(000977),aiming to combine green economy with pension finance and provide investors with more choices of products.This paper first analyzes the current pension product market,and finds that most respondents are willing to carry out financial planning for the future pension at present through a questionnaire survey.In addition,according to the questionnaire survey,due to liquidity allocation and other reasons,some respondents think that the investment term of three years or more is a little longer,so they tend to choose 1-3-year products.Therefore,when designing "Lvyang No.1" in this paper,the target customers are investors who have certain pension financing intention and economic strength,but are not willing to choose a longer product term due to liquidity allocation and other reasons.The age group of corresponding investors is mainly 40-50 years old.Since these investors have a large age span,and investors of different ages often have different risk preferences,this paper refers to the data of the seventh census and sets high and low risk levels for this product by adjusting the participation rate and the break-even rate during the design of product parameters,which correspond to different risk preferences respectively.To provide investors with products that meet their needs as much as possible.The main structure of the product includes the fixed income part and the option part.Considering that the Asian option has the characteristics of controlling the underlying volatility degree and being less influenced by human activities,and the underlying index has a good long-term growth certainty,this paper chooses the Asian option with an embedded bullish average price when designing the option part,and adopts the Monte Carlo simulation method based on Black-Scholes option pricing formula when pricing the corresponding option.Then,in the part of feasibility analysis,the benefits,risks and sensitivity of the product are analyzed,and the advantages and disadvantages of the product are further described through SWOT analysis.Finally,the promotion strategy is designed based on product characteristics.
Keywords/Search Tags:Structured Financial Products, Monte Carlo Simulation, Asian Option Pricing, Pension Finance
PDF Full Text Request
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