 |
 |
 Illustrative Examples |
| Deposit Currency: |
USD100,000 |
| Linked Currency: |
EUR |
| Tenor: |
One Week |
| Spot Rate: |
1.3360 |
| Option One : |
Initial exchange rate = Spot rate |
| Initial Exchange Rate: |
1.3360 (i.e. EUR1 = USD1.3360) |
Interest Rate of Deposit
(Interest Return): |
0.125% p.a.
(USD2.40) |
Option Premium Rate
(Option Premium Return): |
20.875% p.a.
(USD405.90) |
| Scenario Three: |
EUR weakens slightly against USD |
| FINAL
EXCHANGE RATE: |
1.3260 |
| | |
| Payment Currency: |
EUR |
Maturity Balance
Calculation: |
(Principal + Interest Return +
Option Premium Return) / Initial
Exchange Rate |
| | |
| Maturity Balance: |
(USD100,000+USD2.40+USD405.90)/1.3360 |
| |
=EUR75,155.91 |
If customer chooses to convert to USD at the prevailing exchange rate of 1.3260, customer will receive USD99,656.74. |
| Loss: |
USD343.26 |
| Annualized Return: |
-17.66% |
| Note: |
 |
The Spot Rate is the mid-price of buying and selling the currencies. |
|
The related tax to be withheld is not shown in the above example. |
|
The example shown is for reference only and shall not constitute any representation or warranty by the Bank in respect of any possible gain or loss. |
|
|
|
|
you are currently logged off to e-Banking.
