Structured Products Pricer
Price Turbo, Discount and Bonus certificates by replication, and see the vanilla + barrier legs that build each payoff.
Retail structured products look exotic but decompose into plain option legs. This structured products calculator prices the three most common equity certificates by replication, so you see both the fair value and the building blocks behind each payoff.
The three certificates
A Turbo (knock-out warrant) is leveraged directional exposure with a barrier that wipes it out — long spot minus a down-and-out, financed daily. A Discount certificate replicates as long stock minus a call at the cap: you buy the underlying at a discount in exchange for giving up the upside above the cap. A Bonus certificate is long stock plus a down-and-out put (the bonus/floor) minus a call at the cap, so you keep a guaranteed minimum as long as the barrier holds.
Why replication matters
Pricing by replication makes the risks legible: the certificate's volatility and time sensitivity are just the net of its legs, and the vol/time charts show where the gamma and vega signs flip — the part that actually bites the issuer. To go deeper on each product read Turbo, Discount certificate and Bonus certificate, or price the underlying barrier directly in the Barrier Option pricer.
Frequently asked questions
What is a Turbo certificate?
A Turbo is a leveraged tracker with a built-in knock-out barrier: it replicates the underlying with a financing loan, so a small move in spot moves the certificate a lot — until spot hits the barrier and the product dies. Economically it is a barrier option in retail clothing.
How do Discount and Bonus certificates work?
A Discount certificate buys the stock at a discount by selling away the upside above a cap (a short call). A Bonus certificate pays a guaranteed bonus level as long as a downside barrier is never breached (a down-and-out put). Both decompose into vanilla and barrier legs.
Why price them by replication?
Every structured product is a bundle of options. Breaking it into its legs shows exactly where the issuer margin sits and what the client is really selling — usually optionality — which is the whole point of understanding them.
Is the structured products pricer free?
Yes, free and no account needed. Each product shows its replication breakdown and an interactive payoff diagram.