In the last part of our analysis, our goal shifted towards analysing the hedging strains faced by structured product issuers with regards to how they allocate their option budget most effectively to offer the wider barrier/buffers and higher participation rates to investors.
The intention of this analysis is to analyse call and put options, which guarantee the upside and downside potential of structured products, respectively. We looked at the Visa share as one of the top high-sellers among single underliers in the first nine months of 2019, the Tesla share as the third most solid performer - 19.95% annualised capital return in the reviewed 2019 period - and the Nasdaq 100 index. The latter has been selected because its worst-of option combination alongside the DJ I