Shark Fin

advanced
participationknock-outrebatecapital preservation

A barrier capital preservation certificate — earn capped upside participation unless the barrier is knocked out, in which case you receive a rebate plus your protected capital.

Parameters

130%
105%170%
100%
50%200%
2%
0%10%

Payoff at Expiry

ProfitLoss
parStrike 100%Barrier 130%4261809911813750%68%87%105%123%142%160%Final Level (%)$100
100%
50%160%
Payoff
100.0%
P&L
+0.0%
Return
+0.0%
Barrier
INTACT
Max Gain
+29.0%

Scenario Analysis

How Shark Fin Works

Named for its distinctive payoff shape, the Shark Fin contains an up-and-out barrier call with capital preservation. The product has three distinct payoff regions:

BELOW INITIAL (Capital at Risk)

If the underlying falls below 100%, the investor bears the loss. Payoff equals the final level.

INITIAL TO BARRIER (Participation)

Investor participates in the upside. Payoff = 100 + participation rate × (final level - 100).

ABOVE BARRIER (Knocked Out)

Barrier breached — upside is terminated. Investor receives 100% + rebate only.

Investment View (Section 6.6.1)

  • Rising underlying asset price
  • Sharply falling underlying asset price possible
  • Underlying does not touch the barrier during its lifetime

Key Characteristics

  • Minimal redemption at expiry equivalent to capital preservation
  • Capital preservation defined as % of nominal (e.g. 100%)
  • Value may fall below capital preservation during lifetime
  • Participation in positive performance until knock-out
  • Possible payment of rebate following knock-out
  • Capped upside