19 lines
1.3 KiB
Plaintext
19 lines
1.3 KiB
Plaintext
640 Part V: Index Options and Futures
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STRUCTURED PRODUCT SUMMARY
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Structured products whether of the simple style of the Exchange-Traded Fund or
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the more complicated nature of the PERCS, bull spreads, or protected index funds
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- can and should be utilized by investors looking for unique ways to protect long
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term holdings in indices or individual stocks.
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The number of these products is constantly evolving and changing. Thus,
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anyone interested in trading these items should check the Web sites of the exchanges
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where the shares are listed. Analytical tools are available on the Web as well.
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For example, the site www.derivativesmodels.com has over 40 different models
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especially designed for evaluating options and structured products. They range from
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the simple Black-Scholes model to models that are designed to evaluate extremely
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complicated exotic options.
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All of these products have a place, but the most conservative seem to be the
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structured products that provide upside market potential while limiting downside
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risk- the products discussed at the beginning of the chapter. As long as the credit
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worthiness of the underwriter is not suspect, such products can be useful longer
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term investments for nearly everyone who bothers to learn about and understand
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them. |