33 lines
1.9 KiB
Plaintext
33 lines
1.9 KiB
Plaintext
618 Part V: Index Options and Future
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ly equal to that of the structured product would produce a position similar to a 101
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straddle. The reader is left to interpret and analyze other such strategies on his OWI
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LISTS OF STRUCTURED PRODUCTS
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The descriptions provided so far encompass the great majority of listed structure
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products. There are many similar ones involving individual stocks instead ofJndice
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(often called equity-linked notes). The concepts are the same; merely substitute
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stock price for an index price in the previous discussions in this chapter.
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Some large insurance companies offer similar products in the form of annuities
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They behave in exactly the same way as the products described above, except tha
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there is no continuous market for them. However, they still afford one the opportu
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nity to own an index fund with no risk Many of the insurance company products, in
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fact, pay interest to the annuity holder - something that most of the products listed
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on the stock exchanges do not.
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Both the CBOE and American Exchange Web sites (www.cboe.com and
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www.amex.com) contain details of the structured products listed on their respective
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exchanges. A sampling at the time of this writing showed the following breakdowns
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of listed structured products:
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Underlying Index Percent of Listed Products
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Broad-based index (S&P 500, e.g.) 23%
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Sector index
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Stocks
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43%
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34%
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If you browse those lists, an investor may find indices or stocks that are of particular
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interest to him. In addition, it may be possible to find ones trading at a substantial
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discount to cash settlement value, something a strategist might find attractive.
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PERCS
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Part II: Products Designed
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to Provide /,/Income"
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At the beginning of this chapter, it was stated that most listed structured products~
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fall into one of two categories. The first category was the type of structured prod
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uct that resembled the ownership of a call option. The second portion, to be dis- |