Quantization is applied to price vanilla and barrier options
Some buy-side firms avoid illiquid underlyings over manipulation risks
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More Barrier options articles
Basket performance is multiplied by 2.5 and returns are uncapped
US investors can choose from protected or leveraged versions
Quarterly coupon gives 10% annual return in the absence of kickout
Societe Generale sets barrier at 60% in income product for UK retail
Index-based product structured to limit upside and protect downside
Up three times
Capital-at-risk products with a 60% barrier have crept into the retail market and are becoming increasingly ubiquitous. But is the extra risk they pose appropriate for retail investors?
Coupons and capital risk
Fixed coupon for the cautious
Taking a bite of sour Apple
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