
- 27Oct2017
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Does the Volatility of the Underlyings Affect the Pricing of Structured Products?
The short answer is Yes. Essentially, choosing underlyings with a low volatility (usually being indices) means that there is less risk involved and in turn, resulting in a lower reward (Returns P.A in this case). Likewise, when you choose underlyings with higher volatility (usually stocks), the risk is much greater and vice versa.
- 27 Oct, 2017
- NEBA Financial Solutions
- 0 Comments
- Implied Volatility, Investments, Structured Products,