Abstract: According to relevant theories of behavioral finance,from the perspective of both issuers and in vestors,desig ning and pricing of a structured productem bedded barrier option are studied.Firstly,according to behavioral characteristic of issuers and investors,pay off structure of products is designed and pay off function is given.Secondly,under the certain assumption,the closed form solution of the product is obtained.Finally,based on the pricing formula,sensitivity analysis for expiration time,volatility,initial barrier,and initial strike price is conducted.The result shows that these parameters' impact on the theo retical price of the product is different.This result compared with other existing products has some differences.

Key words: structured products, design, pricing, behavioral finance