Trade of the month: range-defined products
In this article we shall consider products which have income potential defined by ‘range' type conditions. These products may or may not have capital protection. Income is calculated every coupon period (eg. annually or semi-annually) and paid out if there is any income accruing. Instead of providing a fixed- or Libor-based income stream the size of each coupon depends on a range defined condition. There are various ways that the range conditions are defined but are generally either ‘one-touch'
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