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2100 Warrant

Product type number as specified by the Swiss Structured Products Association (SSPA): 2100

Market expectations

  • Warrant (call): Rising underlying, rising volatility
  • Warrant (put): Declining underlying, rising volatility
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).
  • Warrants are suitable for short-term speculation or hedging.
  • There is a daily loss of time value (rising towards the end of the term).
  • Regular monitoring is required.
Opportunities

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

  • The call warrant is worthless if the price of the underlying is below the strike price upon expiry.
  • The put warrant is worthless if the price of the underlying is above the strike price upon expiry.
  • The loss potential corresponds to the amount of capital employed.
Pay-off diagram upon expiry

2100 Pay-off

Examples upon expiry

A Product & scenarios Call option

B Product & scenarios Put option

Taxes Call und Put
Swiss income tax No
Swiss withholding tax No
Swiss stamp tax No
EU tax on interest No

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