This is a customised product designed a bank to meet its clients' need. It is a combination of complex options, swaps... often based on non-quoted parameters. For example, an Investment yielding 5% per year plus 1/10 th of the rise of the Eurostoxx 50 index if any. As it cannot be found in any listed Market, its price is determined using a mathematical model, i.e. a process that modelises the behaviour of the product with time and considering different Market evolution.Margins for this kind of products are generally high for banks who create them.

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