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Elasticity Theory of Structuring

16 Pages Posted: 10 May 2013 Last revised: 19 Dec 2016

Andrei N. Soklakov

Deutsche Bank AG (London)

Date Written: April 23, 2013


Financial derivatives have often been criticized as casino-style betting instruments. It turns out that many naive ways of making them are indeed equivalent to gambling. Fortunately, this inadvertent effect can be understood and prevented. We present a theory of product design which achieves that.

Keywords: Optimal investments, structuring, financial derivatives, risk aversion

JEL Classification: C00, D83, G00

Suggested Citation

Soklakov, Andrei N., Elasticity Theory of Structuring (April 23, 2013). Available at SSRN: or

Andrei Soklakov (Contact Author)

Deutsche Bank AG (London) ( email )

Winchester House
1 Great Winchester Street
London, EC2N 2DB
United Kingdom

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