I'm in the county town, and you say I'm a big shot?

Chapter 779 To put it bluntly, this is a gamble.

On the first day of National Day, Fang Qingye didn't go anywhere. She stayed in her study studying the financial product designed by Zhang Dongwen, and she spent the whole day thinking about it.

The core mechanism of this "Phoenix" cumulative option product is not simple: the contract stipulates that Mintian Group, as the seller, sells a cumulative option linked to the stock price of Wanjia Culture (the underlying asset) to the counterparty.

During the contract period, the monthly settlement date is as follows:
If the share price of Wanjia Culture is higher than the preset high exercise price A, Mintian Group can obtain a fixed amount of premium paid by the counterparty.

Once the stock price falls below the even lower critical threshold—the knock-in price B—the contract will automatically activate the knock-in condition.

After the option was entered, the role of the Mintian Group was completely reversed: they had to take over the Wanjia Culture shares sold by the counterparty at an initial exercise price that was far higher than the market price every day until the contract expired or the cumulative amount of takeovers reached the predetermined limit!
The contract also contains a special incentive clause:
If the share price of Huazi Industry (Target 2) reaches a higher preset target price A during the term of the agreement, Mintian Group will receive a huge super bonus sufficient to cover most of the financing costs. This clause is independent of the aforementioned knock-in conditions and is essentially a double temptation, leading Mintian Group to underestimate potential risks in pursuit of high returns.

To put it bluntly, this is a gamble:
As long as Wanjia Culture's stock price remains high, the Mintian Group can easily collect a huge sum of money from its counterparties every month, just like collecting rent.

What's even more enticing is that as long as the Mintian Group can push Huazi Industry's stock price to the "Dragon Gate Price," they can obtain a huge bonus in one go.

However, once Wan Jia Culture's stock price falls below the bottom line, all profits will immediately cease, and the contract will instantly reverse. The Min Tian Group will have to become the "sucker," buying up Wan Jia shares that no one else wants at high prices, doubling their value every day, until they are completely drained!

Whether it's a poison pill or a candied fruit, it often happens in an instant.

Of course, this is only a qualitative description; the actual quantitative implementation is much more complex.

When it was time for dinner, the nanny came upstairs to call him. Fang Qingye rubbed his sore eyes and followed her downstairs.

Bai Ou was already in the dining room with the child. Seeing him come down, she smiled and joked, "Ye Zi, that's rare..."

"What's so rare?"

"It's such a beautiful autumn day, and you didn't go fishing or to the nursery for tea. You actually spent the whole day in your study... It's unbelievable," Bai Ou said playfully.

"There's no way around it, I have to understand the design they gave me, right?" Fang Qingye washed her hands and sat down at the dining table.

"My classmate is a genius; he actually designed such an ingenious product. Essentially, it's a sophisticated derivative that utilizes a multi-barrier option structure and a dual-asset linkage model, integrating Monte Carlo simulation and stochastic volatility models, through sophisticated long-short hedging..."

"Stop, stop, I don't understand any of this," Bai Ou interrupted with a smile.

Fang Qingye smiled and didn't continue. She took a bite of the noodles and couldn't help but sigh, "To be honest, Zhang Dongwen was just a bookworm back in school. I never realized she was so amazing."

“That’s called being wise in disguise! Unlike you, all you do in college is play games and badminton all day…” After saying that, she gently pinched her son’s cheek, “Yangyang, don’t waste your time like your dad when you go to college!”

My son is only a little over a year old, how could he understand? He just stared at his mother with his big, round eyes, but he still subconsciously made a "hmm" sound.

"Look, Yangyang is such a good boy! He'll definitely get into Tsinghua or Peking University in the future!" Bai Ou said, then kissed her son on the cheek, making the little guy giggle.

Fang Qingye thought to himself: Sigh... With the empire I built for you, wouldn't it be better to just be a happy rich kid? Why do you have to study so hard and study so diligently?
There's nothing we can do about it; Jinghai places too much emphasis on children's education, it's incredibly demanding.

The "Jinghai exam paper" has long been a nightmare that students can't shake off.

After dinner, Fang Qingye accompanied his wife and child for a walk in Nanxinhu Park across from their apartment complex. Back at the villa, he reviewed the plans for a while longer, then took out his phone and dialed Zhang Dongwen's number.

"Dongwen, I received your proposal yesterday and spent the whole day studying it at home today... I admire you, I truly admire you!" A soft laugh came from the other end of the phone: "Qingye, you drove over a thousand kilometers to see me, of course I have to do my best. But I must remind you, the most crucial point of this 'Phoenix' cumulative option product is based on the assumption that the stock prices of Wanjia Culture (the first underlying asset) and Huazi Industry (the second underlying asset) will both fall sharply in the future. All my designs revolve around this assumption. Once this premise fails, it won't be a poison pill for the Mintian Group, but a real sweet treat!"

"Don't worry, since I asked you to design it this way, I naturally considered the consequences." Fang Qingye's tone was relaxed. "Zhao Wei used Longwei Media to leverage 50 times, does she really think she can succeed so easily?"

“Qingye, I have to remind you,” Zhang Dongwen said seriously, “Zhao Wei now is not the Little Swallow who played 'Princess Pearl' back then. She has a wide network and great influence in the financial circle. You have to be careful.”

"No matter how great your energy is, you can't escape the iron fist of socialism!" Fang Qingye laughed and changed the subject: "Dongwen, send me your personal account number, and I'll transfer the payment to you."

"You're actually going to give it to me?"

"Of course, you deserve to be rewarded for designing such an excellent financial product. This is a sign of respect for your work, for you, and for this product."

“Alright…then I won’t stand on ceremony. Just pay according to industry practice,” Zhang Dongwen said.

"it is good."

After receiving the account information from Zhang Dongwen, Fang Qingye quickly completed the transfer, and a sum of money was promptly deposited into the other party's account.

A few minutes later, the phone rang again; it was Zhang Dongwen calling.

"Qingye, you transferred a million? Did you accidentally add an extra zero? And according to industry practice, this product isn't even worth a hundred thousand."

“No mistake, it’s a million. I think it’s worth the price… Take it, I might need your help again in the future,” Fang Qingye said.

"This...I..."

"Dongwen, you know I've earned quite a bit over the years, I really don't need this much. If you go back to your hometown and pass the civil service exam, the salary won't be too high, but having some money will make life easier," Fang Qingye said sincerely.

"Well... okay. Don't hesitate to ask if you need any help in the future. I don't have any other skills, but I'm good at designing this."

"Okay, I'll let you know when I need it. Goodbye."

"Goodbye."

In Shiwogou Village, deep in the Yimeng Mountains, all is quiet except for a few scattered lights and the occasional bark of a dog.

In her bedroom, Zhang Dongwen stared blankly at the extra million yuan displayed on her laptop screen, which showed that her account had been credited with an additional one million yuan.

After three years of hard work and saving every penny in Shanghai, she finally managed to save a little over 200,000 yuan.

With this million... I won't have to worry about my parents' retirement or my brother getting married anymore, right?
She immediately felt a significant weight lifted off her shoulders.

On the other end of the phone, Fang Qingye was not in a relaxed mood.

Zhang Dongwen has already designed the plan, like a carefully wrapped "candy." The question now is—how to get Xiao Jianhua to happily accept it?

(End of this chapter)