The Characteristics of the Investment through the Airbag Certificates
| Authors | |
|---|---|
| Year of publication | 2016 |
| Type | Article in Proceedings |
| Conference | Financial Systems 2016. Proceedings of the 13th International Scientific Conference |
| MU Faculty or unit | |
| Citation | |
| Field | Management and administrative |
| Keywords | return; risk; airbag certificate; investment |
| Description | The aim of this paper is to examine the change in t he fundamental investment characteristics, especially a change in the expecte d return and the risk of investment, provided that the investor will use the selected ce rtificate with a partial guarantee on invested capital instead of a direct investment in the underlying asset. First will be selected an underlying asset. It will be then model ed the development of its value by Monte Carlo simulation. This development also affec ts the development of the value of alternative investments through a certificate. The certificate will be divided into components from which it is comprised, and these wi ll be priced. Then it will be statistically evaluated and assessed the change in investment characteristics compared with investment characteristics of direct investmen t in the underlying asset. Finally, discussions will be carried out and formulated reco mmendations for the retail investor. |
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