What is Shark-Fin Bull Note?
It is a structured note with embedded derivatives, having a maturity period of 3 months to 1 year. It provides a return similar to investing in bonds but differs from other types of structured notes with embedded derivatives, like other ELN (Equity-Linked Notes). The Shark-Fin Bull Note offers principal protection and provides various types of returns, including interest rate returns, special returns (Rebate Rate), or participation rate returns. These returns depend on the reference stock, investment period, trigger level, protection level, and strike price chosen by the investor.Shar-Fin Bull Note can increase the opportunity for returns in stocks that move within a range, without significant upward or downward shifts. It still provides the agreed-upon special returns and enhances the chance of earning unlimited returns from the reference stock, similar to direct investment in that stock.
Why invest in Shark-Fin Bull Note?
- It offers additional returns if the reference asset moves within a specified range.
- It limits downside risk even in a volatile market due to principal protection (under specified conditions).
- It performs well in periods of unclear or sideways-up stock market trends.
- Investors seeking high returns and able to tolerate risk.
- Highest Profits = equivalent to the interest returns and/or special return rate, depending on the chosen risk level.
- Highest Losses = the principal amount refunded at the selected protection level.
After the investor has opened an ELN account, the first thing investor needs to know before start investing in ELNs must be the prices and yields of our products. Investors can follow up on the indicative price sheet of Shark-Fin Bull and seeking additional advice from the investment advisor.
Pricing Sheet
| Pricing Sheet: Bonus Note | |||||||
|---|---|---|---|---|---|---|---|
| Trade Date | 5 February 2024 | Protection Level (%) | 100% | ||||
| Issue Date | 7 February 2024 | Notional Amount | 10,000,000 Baht | ||||
| Valuation Date | 5 August 2024 | Settlement Method | Cash Delivery | ||||
| Maturity Date | 7 August 2024 | No. of holding days | 182 Days | ||||
|
Underlying |
Spot Price (THB) | Strike Level (%) | Trigger Level (%) | Participation Rate (%) | Rebate Rate (%) | Interest Rate (%) | |
| AAA | 100 | 100% | 110% | 25% | 0.00% | 2.00% | |
Spot Price is the AAA share close price in the day before (2 February 2024). The example price sheet will only be use for calculation reference. It is not the actual price that investor will get. The Trigger level, protection level, strike level are the only factors that investor will get from the pricing sheet. (These factors do not depend on the spot price.)
When you start investing in ELN, we will call this date “Trade Date”
| 1. Trade Date (5 February 2024) | |||
|---|---|---|---|
| Assume you choose AAA stock at 100% Strike level, Trigger Level 110%, Notional amount of 10 million Baht, and Spot price of 100 Baht. | |||
| Strike Price | 100 Bath (100% of Spot Price) | ||
| Spot Price | 100 Baht | ||
| Trigger Price | 110 Baht (110% of Spot Price) | ||
| Protection Level | 100% | ||
| Participation Rate | 25.00% | ||
| Interest Rate | 2.00% per year | ||
| Rebate Rate | 0.00% | ||
| 2. Issue Date (7 February 2024) is Trade Date 2 Working Days | |||
| Money will be transfer to account for buying Shark-Fin Bull Note | |||
| Notional Amount | 10,000,000 Baht | ||
| 3. Valuation Date (5 August 2024) is Maturity Date 2 Working Days | |||
| There are 3 possible cases for your return | |||
|
Case 1 (100 ≤ AAA<110) e.g. spot price 109 Baht Strike Price ≤ Spot Price < Trigger Price |
Investors receive (Before tax) 1. Cash at protection level at 10,000,000 Baht* and 2. Interest at 99,726.02 Baht** and 3. Participation at 22,500 Baht** *10,000,000 x 100% **10,000,000 x (2.00% x 182 / 365) ***10,000,000 x [25% x (109 - 100) / 100] |
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|
Case 2 (AAA ≥ 110) AAA e.g. spot price 120 Baht Spot Price ≥ Trigger Price |
Investors receive (Before tax) 1. Cash at protection level at 10,000,000 Baht* and 2. Interest at 99,726.02 Baht** *10,000,000 x 100% **10,000,000 x (2.00% x 182 / 365) |
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Case 3 (AAA < 100) e.g. spot price 95 Baht Spot Price < Strike Price |
Investors receive (Before tax) 1. Cash at protection level at 10,000,000 Baht* and 2. Interest at 99,726.02 Baht** *10,000,000 x 100% **10,000,000 x (2.00% x 182 / 365) |
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| 4. Maturity Date (7 August 2024) | |||
| Investors receive return according to the case in Valuation Date | |||
Overall Return
Disclaimer
The Structured Note is offered to High-Net-Worth investors (HNW), Ultra High-Net-Worth (UHNW) and institutional investors (II). It is a high-risk and complex product. The value of the Structured Note depends on uncertain factors. Investors may lose the principal in whole or part or receive lower-than-expected returns. Structured Notes do not have a secondary market for trading and have transfer restrictions as specified by the terms and conditions. Please understand the product's characteristics, the conditions of return, and the risks involved, and seek additional advice before making an investment decision.