Abstract
Abstract Reaching the era of low interest rates, the average deposit rate has been unable to compensate the inflation. Dual currency that is one of the structure-linked products has become one of the major financial instruments of foreign currency deposits. Unfortunately, most of the investment results were not as good as expected due to both the bankers and investors may not be professional of the product and the decision traps. However, little research has been done to address the decision making invovled in dual currency investment. To fill the gaps, this thesis aims to address the issue whther the dual currency is suitable for the customer's short-term foreign currency investments and how the investors can take advantage of existing information in a comprehensive and systematic assessment to make an effective and logical decision for the optimal dual currency investment decisions to improve the outcome. Based on Unison Decision Framework, this thesis developed the decsion framework for dual currency investments and employeddecision tree and sensitivity analysis to identify the major factors affecting investment decisions. An empirical study was conducted to analyze real cases from the historical transactions data of three customers in A-bank. The results have illustrated the proposed approach and also shown practical viability of the developed framework. Indeed, yield-enhanced dual currency investment products is not guaranteed but it is suitable for the inventors who are willing to take foreign currency exchange risk to seek better return than deposits. The currency portfolio is one of the key success factors to make investment decisions. However, dual currency with high liquidity and superior deposit yieldis is worthy of the foreign currency financial instruments. Based on the research findings, we recommend the investors should fully understand the structure and content of the risk invovled in the financial investment products such as yield-enhanced dual currency before investment. Financial sector should fulfill the responsibilities of a good administrator and reveal possible investment risks to the investors and strengthen management expertise and investment platform. Finally, the government authority should assist the industry to establish a sound regulatory and institutional to develop of the overall business. Key words : Dual Currency Investment ; Currency Options ; Structured deposit; UNISON Decision Analysis Framework; Decision tree