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Guarantee Security for Study Abroad-the Design of a Financial Product

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DOI: 10.23977/ferm.2022.050308 | Downloads: 16 | Views: 566

Author(s)

Kefan Jiang 1

Affiliation(s)

1 Xiamen University, Xiamen 361000, Fujian, China

Corresponding Author

Kefan Jiang

ABSTRACT

The cost is about 2.5 million for a Chinese student learning in the USA without a green card, which is not a small expenditure for most common families, serving as a burden for them. Moreover, the Sino-US currency has been fluctuating, bringing risk to these families to some extent. Considering the risk of fluctuating currency, the researchers plan to design a financial product to hedge the risk of fluctuating currency for families affording students studying in the USA, which attempts to lower the risk of Sino-Us currency under the precondition of preservation.

KEYWORDS

Financial Products, Options, Exchange Risk

CITE THIS PAPER

Kefan Jiang, Guarantee Security for Study Abroad-the Design of a Financial Product. Financial Engineering and Risk Management (2022) Vol. 5: 67-72. DOI: http://dx.doi.org/10.23977/ferm.2022.050308.

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