Product Design

This tool visualizes the construction of structured products. At the heart of the device is a payoff diagram, which advisors and clients can change manually and discuss the pros and cons of capital protection and upside potential, to site an example. The client will understand that there are trade-offs on the market since whenever he raises the payoff some returns of the underlying, the program readjusts the payoffs in all areas so that the budget spent for the product remains the same.

An Internet based version of the tool can be found here.

 

The calculations used in the case studies of Chapter 5 can be found here.