Getting underlying assets at strike prices

pips

Call options allow structured product investors to buy the underlying asset at a strike price, and the price of the option is determined by the volatility of the asset

A structured product involves the purchase of assets by a product provider from an investment bank. When an investor buys a straightforward capital protected growth product, some of the original investment goes towards initial charges and the costs of setting up the product, including adviser commission - usually around 3%. Most of the investment after set up costs is used to purchase zero coupon bonds which provide the capital protection component of the product. The product's growth potential is made possible by the purchase of call options on the underlying asset. These are bought with t...