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2110 Spread warrant

Product type number as specified by the Swiss Structured Products Association (SSPA): 2110

Market expectations

  • Spread warrant (bull): rising underlying
  • Spread warrant (bear): declining underlying
Characteristics

  • A small amount of capital employed produces a leverage effect over the underlying.
  • This product involves an increased risk of sustaining a total loss (limited to the amount of capital employed).
  • The opportunity to make a profit is limited (cap).
  • There is a daily loss of time value (rising towards the end of the term).
  • Regular monitoring is required.
Opportunities

  • The return on the spread warrant is disproportionately high compared to a direct investment in the underlying. Spread warrants are suitable as an investment, for speculation, or for hedging.
Risks

  • The spread warrant (bull) is worthless if the price of the underlying is below the strike price upon expiry.
  • The spread warrant (bear) is worthless if the price of the underlying is above the strike price upon expiry.
  • The loss potential is limited to the purchase price.
  • The opportunity to make a profit is limited (cap).
Repayment terms
  • The number of underlyings sold/bought under the option contract is determined by the exercise ratio.
  • If you do not wish to buy or sell the underlying upon expiry, you can sell the spread warrant on the stock exchange.

Pay-off diagram upon expiry

2110 Pay-off

Taxes
Swiss income tax No
Swiss withholding tax No
Swiss stamp tax No
EU tax on interest No

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