Call Valuation Date definition
Examples of Call Valuation Date in a sentence
Each of the following hypothetical examples illustrates how the Maturity Redemption Payment is calculated using a Call Threshold of 8%, a Fixed Return of 12% on the Call Valuation Date (Year 1), a Fixed Return of 24% on the Call Valuation Date (Year 2), a Fixed Return of 36% on the Final Valuation Date (Year 3), a Variable Return Threshold equal to the applicable Fixed Return, a Participation Factor of 10% and a Barrier of -15%.
The following table is based on the assumption that the Reference Portfolio Return is higher than the Call Threshold and higher than the applicable Fixed Return on the third Call Valuation Date.
The following table is based on the assumption that the Reference Portfolio Return is higher than the Call Threshold but lower than the applicable Fixed Return on the third Call Valuation Date.
Reference Portfolio Return:32.00%Applicable Fixed Return:27.00%Variable Return: MAX[0.00%, (32.00% - 27.00%) x 5.00%]:0.25%Maturity Redemption Payment: US$100.00 x [1 + 27.00% + 0.25%]:US$127.25Annualized compounded return over the 3-year term:8.36% In this example, the Reference Portfolio Return on the third Call Valuation Date is 32.00%, which is higher than the applicable Call Threshold and higher than the applicable Fixed Return.
Reference Portfolio Return:30.00%Applicable Fixed Return:19.50%Variable Return : MAX[0%, (30.00% - 19.50%) x 5.00%]:0.53%Maturity Redemption Payment : $100 x [1 + 19.50% + 0.53%]:$120.03Annualized compounded return over the 3-year term:6.27% In this example, the Reference Portfolio Return on the third Call Valuation Date is 30.00%, which is higher than the applicable Call Threshold and higher than the applicable Fixed Return.