Structured note
A structured note is a hybrid security that includes several financial products, typically a stock or bond plus a derivative. A simple example would be a five-year bond tied together with an option contract. The addition of the option contract changes the security's risk/return profile to make it more tailored to an investor's comfort zone. This makes it possible to invest in an asset class that would otherwise be considered too risky.[1]
See also
References
- ^ Robert W. Kolb, James A. Overdahl (2003), Financial derivatives, p. 245
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