Do Structured Products Give Equity Like Returns?

Master's Thesis from the year 2007 in the subject Economics - Finance grade: Pass Cranfield University (Cranfield School Of Management) course: Finance & Management language: English abstract: This thesis researches the pricing and back testing on structured products in the United Kingdom Market. We conclude that structured products do not give equity like returns.The structured products performance is evaluated on the basis of pricing and back testing is performed on three different instruments issued in the United Kingdom market. Their returns are compared with the returns of the FTSE 100 index UK Treasury Bond and the Synthetic Instruments. The Black and Scholes model for dividend payments is used in this study to calculate the option prices of the structured products.