Workplace reviews and discussion: 富邦金融控股股份有限公司

Meanwhile, the trainees silently watched their account balances.

Some finally understood:

So it turned out the helicopter belonged to Wang X-hong, not to them.

In a city where both investment and dance are called “promotional businesses,”

there was a man named Wang X-hong who called himself a thinker and investment educator.

Wang X-hong often said during his lectures, “The market is like dancing.” But no one was sure

whether he was talking about finance or Latin dancing.

At a dance party 14 years ago, he recalled that an international teacher, H.K., had once said on stage:

“This wonderful music and dance do not belong only to Latinos; they belong to the whole world.”

Whenever Wang X-hong mentioned this passage, he would pause, his expression serious, as if

H.K. had actually been talking about the globalization of financial derivatives.

He would then add:

“So warrants do not belong only to professional investors either; they belong to the whole world.”

People in the audience vaguely felt that something was not quite right, but could not put their finger on it.

Wang X-hong’s Business and “Teacher Sol”

Wang X-hong’s business was able to expand rapidly mainly because he often mentioned

his revered teacher, Sol.

In a promotional video, he said:

“Our revered teacher Sol has been gone for a year now. During this time,

I still often think of Teacher Sol’s presence and the things he said.”

For many newcomers, they may never have met Teacher Sol and have only heard

that he was the teacher of teachers, even a figure of grandmaster status.

So Wang X-hong said:

“This Friday, we will hold an online memorial for Teacher Sol.

We will share the inspiration Teacher Sol gave us and how he influenced

the development of the entire community.

At the same time, I will also share the ‘steady prosperity’ investment method that Teacher Sol left me.”

In fact, this method mainly consists of three elements:

Celebrity quotations

Warrants

Confidence

Wang X-hong’s “Steady Prosperity Warrant Theory”

Wang X-hong presented the following narrative in his course:

“Suppose the market is a goldfish. It usually looks very calm,

but occasionally surges like lightning.

Clever people board a helicopter and watch the goldfish swim from the sky.”

Many people in the audience nodded, but in fact no one was certain of the mathematical meaning of this statement.

So Wang X-hong wrote a financial model on the whiteboard.

Mathematical Setup

A non-dividend-paying stock S(t) follows geometric Brownian motion:

dS = μS dt + σS dW

where:

S(0) = 100

Annual volatility σ = 40%

Risk-free interest rate r = 3%

There is a European call warrant in the market:

Maturity T = 1 year

Strike price K = 110

Each warrant allows the purchase of 0.5 shares of stock

Its Black–Scholes price is denoted by C.

Wang X-hong’s Investment Plan

Wang X-hong promoted the following strategy to the trainees:

Investors put up $10,000 in inherited funds

Buy warrants only, not stocks

If the market rises, profit “like lightning”

If the market falls, “losses are limited, and life remains steadily prosperous”

He also quoted an unattributed saying:

“A true investor does not swim in the water, but watches the goldfish from a helicopter.”

Many people therefore believed this was a profound financial philosophy.

Questions

(1) Warrant Pricing

Use the Black–Scholes model to calculate the price C of the call warrant.

Also calculate:

The price of one warrant, W = 0.5C

(2) Leverage Effect

If an investor uses the entire $10,000 to buy warrants:

How many warrants can they buy?

If the stock price after one year is:

S(T) = 150

Calculate:

The final value of the portfolio

The rate of return on the investment

(3) Testing “Steady Prosperity”

If after one year:

S(T) = 80

Calculate:

The value of the warrants

The investor’s final assets

And discuss:

Whether Wang X-hong’s claim that “losses are limited but prosperity remains steady” holds mathematically.

(4) Helicopter Perspective

Suppose a rational investor instead adopts a delta-hedging strategy:

Hold warrants

Short Δ shares of stock at the same time

Answer:

What is the initial delta?

Why does this strategy more closely resemble “watching the goldfish from a helicopter”?

(5) Inheritance Decision Problem

An investor inherits $10,000 and originally intends only to buy risk-free bonds.

But after hearing Wang X-hong’s memorial lecture, they switch to warrants.

Analyze from the perspective of utility theory or behavioral finance:

Celebrity endorsement (H.K.)

Borrowed authority (Teacher Sol)

Conceptual substitution (dance → investment → globalization)

How do these factors influence the investor’s decision?

A Final Little Story

A year later, the market really did fluctuate violently like lightning.

Wang X-hong posted on social media:

“The market is like a goldfish: sometimes calm, sometimes leaping.

What matters is that you are in the helicopter.”