Call options falling in price

structured products

lower volatility in the ftse 100 over the past month cancels out gains in zero coupon bonds

Lower volatility in the FTSE 100 during August has led to a decrease in the price of call options, according to data from Future Value Consulting's (FVC) DataPricer system. Call options are the major equity-linked component for any capital protected product and the fall has effectively cancelled out an increase in zero coupon bond prices, which rose some 0.7% in August. Tim Mortimer, managing director of FVC, said this ultimately means the asset prices of typical protected products offered to investors over five or six years remain roughly unchanged and are therefore showing very similar ...