Since facing widespread skepticism after the 2008 economic crisis, nowadays structured products have gradually become the preferred investment choice for individual consumers, driven by the development of technology and economy. This study analyzes the price of the two most recent structured products offered by Lowes, which closely resemble the FTSE 100 index. It focuses on analyzing the differences in predicted returns resulting from modest structural changes and explores the best solutions for different time periods. The variability is determined by combining historical variability with the GARCH model, based on the principle of Risk Neutral Pricing Theory. The final result is acquired by the application of the Monte Carlo simulation method. Based on the trial results, product B has a greater yield rate compared to product A, although being more conditional. This compensates for the shortage and resulting in a much higher yield rate for product B. Furthermore, based on the findings on the projected output of various investment goods over different time periods, it can be observed that as the length increases, the anticipated return also increases. Ultimately, the sensitivity analysis reveals that the primary source of product risk stems from the impact of risk-free yields on this particular product.
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