On the Initial Valuation Date, the closing price of the Apple share will be fixed as the starting value and the barrier (58% of the starting value) will be determined. During the observation period, the daily closing prices of the share are compared with the barrier. As long as the stock does not close 42% or more lower than its starting value on any day, the payout will be effected at the end of the term according to the "Twin Win" mechanism:
- Any positive performance of the share up to the cap of +50% compared to the starting value is paid out at the end of the term 1:1 in addition to the nominal amount
- A negative performance of the share down to the barrier will also be converted into profit at the end of the term 1:1 and paid in addition to the nominal amount, given that the barrier was never violated
What happens if the barrier was violated?
If the barrier was touched or undercut at least once during the term and the closing price of the share on the Final Valuation Date is below the cap of 150%, the redemption is effected at maturity in the form of physical delivery of Apple shares.
If the stock rerises at least 50% above the starting value at maturity despite a previous barrier breach, the repayment will be effected at USD 1.500 per nominal value. This means, investors never participate in price increases of the share beyond the cap.
The certificate USD Apple Twin Win quotes in USD. If the cash flows from the certificate are subsequently converted into another currency, additional risks as well as opportunities arise from possible exchange rate fluctuations.
Further information as well as the Key Information Document can be found on the product page.
Bonus Certificates – explained shortly:
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The Structured Products Team of Raiffeisen Centrobank