Index
Return = Absolute Value (-19.00%)
Index
Return = 19.00%
Therefore,
the Cash Settlement Value would equal $1,222.30, or the $1,000.00
principal
amount of the Notes plus the Variable Return of $222.30; where
the Variable
Return is as calculated below:
Variable
Return = $1,000.00 x Participation Rate x Index Return
Variable
Return = $1,000.00 x 117.00% x 19.00%
Variable
Return = $222.30
In
this
example, although the Final Index Level is lower than the Initial
Index Level,
your return on investment will still be positive (in this case,
22.23%), because
(1) the Index Return measures the absolute value of the quotient
of (i) the
Final Index Level minus the Initial Index Level divided by (ii)
the Initial
Index Level, and (2) at all times during the Observation Period,
the Closing
Level was observed below the Upper Barrier and above the Lower
Barrier.
Example
2:
In
this
example, the Closing Level at some time during the Observation
Period is
observed above the Upper Barrier. Although the Final Index Level
in this Example
2 is equal to the Final Index Level in Example 1, and therefore
the Index Return
for this Example 2 would also equal the Index Return in Example
1, because the
Closing Level at some time during the Observation Period was
observed above the
Upper Barrier the Variable Return equals zero.
Therefore,
the Cash Settlement Value would equal the $1,000.00 principal
amount of the
Notes.
In
this
example, your return on investment would be 0.00%, because at
some time during
the Observation Period the Closing Level was observed above the
Upper
Barrier.
Example
3:
In
this
example, the Closing Level, at all times during the Observation
Period, is
observed below the Upper Barrier and above the Lower Barrier.
The Index Return,
as calculated below, is 17.00%.
Index
Return = Absolute Value (17.00%)
Index
Return = 17.00%
Therefore,
the Cash Settlement Value would equal $1,198.90, or the $1,000.00
principal
amount of the Notes plus the Variable Return of $198.90; where
the Variable
Return is as calculated below:
Variable
Return = $1,000.00 x Participation Rate x Index Return
Variable
Return = $1,000.00 x 117.00% x 17.00%
Variable
Return = $198.90
In
this
example, your return on investment will be positive (in this
case, 19.89%),
because at all times during the Observation Period, the Closing
Level was
observed below the Upper Barrier and above the Lower Barrier.
Example
4:
In
this
example, the Closing Level at some time during the Observation
Period is
observed below the Lower Barrier. Although the Final Index Level
is greater than
the Initial Index Level, because the Closing Level at some time
during the
Observation Period was observed below the Lower Barrier the Variable
Return
equals zero.
Therefore,
the Cash Settlement Value would equal the $1,000.00 principal
amount of the
Notes.