The fact is suitable for use in financial courses, but requires knowledge of the price of the option, including a put-call parity. Students should also have an impact on the principles of financial engineering. Can be taught as part of the risk management module in corporate finance as an elective course for derivatives, in terms of the design and pricing of financial engineering products. Aspect of risk management in the event contributes to a productive discussion on the regulation of derivatives in the reform of the financial system in response to the financial crisis. This case describes a structured note market as a result of the financial crisis 2007-08. Security in this case was the index knockout note, which was developed by Credit Suisse private banking market. Adoption in terms of private client banking, students must decide whether they will invest in a note on the basis of its unique risks. "Hide
by Kenneth Eades, Surendra Bashani Source: Darden School of Business 10 pages. Publication Date: 04 May 2010. Prod. #: UV5605-PDF-ENG
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