In the past, structuring bullish gold products had been difficult because of its relatively high volatility and the fact that its forward price is always higher than its spot price. If an investor wants full 100% principal protection, not contingent via airbags, the participation rates are inevitably low, says Garry Frenklah, head of non-Japan Asia private banking sales, equity derivatives and FXprecious metal derivatives at RBS.
In other words, investors have to sell a lot of their upside to make the option they're buying affordable. According to Frenklah, investors...
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