You are working for a large US investment bank and are asked to provide a...

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Accounting

You are working for a large US investment bank and are asked to provide a report for the Head of the Structured Products team. Analysing two HSBC products that were offered to clients a few years ago
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The first product is called HSBC Buffered Index Note and the second is called HSBC Buffered Accelerated Market Participation Security. The head of the team asked you to provide an analysis of these products, with the aim to understand whether similar products could be offered to you clients. The products described in the attached brochure are relatively long term, the your team would like you to consider a maturity of at most one year for these products.
The Head of the Structured Products team is particularly concerned about the risks of these
products in the future, i.e. after you have sold the products to clients and the maturity of
the products gets shorter. Provide analysis based on the Black-Scholes model to show how
the risks may change over time

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