Product performance

Product performance

The need for speed

This month we compare two six-year principal-protected products linked to the FTSE 100 index. The first product has 100% gearing with a maximum return of 59%, while the second offers uncapped index-linked returns through its participation rate of 83%. The products were both priced by fixing the issue price at 100%. To find the cap for the first product we set the participation to 100% and solved for the price. To find the gearing for the second product, we just solved for the price allowing the

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