PROPOSAL OF A NEW GUARANTEED CERTIFICATE USING EXOTIC OPTIONS Cover Image

PROPOSAL OF A NEW GUARANTEED CERTIFICATE USING EXOTIC OPTIONS
PROPOSAL OF A NEW GUARANTEED CERTIFICATE USING EXOTIC OPTIONS

Author(s): Abduhamid M. Ahmed Younis, Zuzana GORDIAKOVÁ
Subject(s): Economy
Published by: Reprograph
Keywords: guarantee certificates; exotic options; barrier options; digital options; portfolio options

Summary/Abstract: This article deals with the issue of guarantee certificate formation on the financial market. The main objective is to design a new guarantee certificate suitable for conservative investors. We found an alternative opportunity to the purchase of this certificate, i.e. investment in a bank deposit, together with a purchase of cash or nothing down and knock-out portfolio call option and a sale of cash or nothing down and knock-out portfolio put option. In our analysis we use a novel approach based on profit functions.

  • Issue Year: VIII/2013
  • Issue No: 24
  • Page Range: 191-197
  • Page Count: 7
  • Language: English
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