Your Market Expectations

You anticipate an increase of the Underlying until the Final Fixing Date and expect the volatility of the Underlying to increase as well. You would like to be protected against sharp price decreases of the Underlying at Redemption.

Our Proposal

By investing in a Capital Protection Certificate you can enjoy 100% participation in price increases of the Underlying until the respective Cap Level whilst being 100% protected at Redemption against price decrease of the Underlying.

Description

The Investor is entitled to receive from the Issuer on the Redemption Date a Cash Settlement in the Settlement Currency which equals the Capital Protection multiplied by the Denomination if the Final Fixing Level is at or below the Initial Fixing Level. If the Final Fixing Level is above the Initial Fixing Level the Investor will receive the lower of the Denomination multiplied by the Cap Level or multiplied by the product of the Participation and the Final Fixing Level divided by the Initial Fixing Level.

Component 1

The Investor buys a bond. This component increases in value if interest rates fall, and decreases in value if the interest rates rise. This component provides the Capital Protection element of the Product.

Component 2

The Investor buys a Call-Option on the Underlying. The value of the Call-Option rises with increasing fluctuations of the Underlying (volatility). The Strike of the Call-Option is equal to the Initial Fixing Level of the Underlying.

Component 3

The Investor sells a Call-Option on the Underlying. The Strike of the Call-Option equals the Cap Level of the Certificate. The value of the Option rises with increasing fluctuations in the Underlying (volatility).

If the Final Fixing Level is at or below the Initial Fixing Level, the Investor will receive the Capital Protection Level multiplied by the Denomination.

Redemption Scenario 2

Should the Final Fixing Level lie above the Initial Fixing Level, the Investor will receive the smaller of the Denomination multiplied by: a) the Cap Level, or b) the sum of the Participation and the Final Fixing Level, divided by the Initial Fixing Level.

Opportunities and Risks of Capped Capital Protection

Opportunities

• You participate in price developments in the Underlying according to the Participation   Rate whilst also being protected against losses below the Capital Protection Level.
• Liquid secondary market on the SIX.

Risks

• The Investor does not participate in the price developments of the Underlying above the Cap Level of the Product.
• The issuer of the Certificate can quote below the Capital Protection Level depending on changes in the interest rates and other risk factors during the Product’s term. 
• The value of the Investment does not only depend on the development of the Underlying, but also on the worthiness of the Issuer, which can change throughout the Product’s Term.