 |
 |
 Illustrative Examples |
| Deposit Currency: |
USD100,000 |
| Linked Currency: |
EUR |
| Tenor: |
One Week |
| Spot Rate: |
1.3360 |
| Option Two : Customised Initial Exchange Rate which is higher than spot rate |
| Initial Exchange Rate: |
1.3260(i.e. EUR = USD1.3260) |
Interest Rate of Deposit
(Interest Return): |
0.125% p.a. (USD2.40) |
Option Premium Rate
(Option Premium Return): |
12.5%p.a. (USD243.10) |
| SCENARIO Four : |
EUR weakens significantly against USD |
| FINAL
EXCHANGE RATE: |
1.3160 |
| | |
| Payment Currency: |
EUR |
Maturity Balance
Calculation: |
(Principal + Interest Return +
Option Premium Return) / Initial
Exchange Rate |
| | |
| Maturity Balance: |
(USD100,000+USD2.40+USD243.10)/1.3260 |
| |
=EUR75,599.92 |
If customer chooses to convert to USD at the prevailing exchange rate of 1.3160, customer will receive USD99,489.50.
|
| Loss: |
USD510.50 |
| Annualized Return: |
-26.26%
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| Note: |
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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. |
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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. |
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