The following example illustrates various scenarios* that determine the final redemption currency and your return:
|Deposit currency||Hong Kong Dollar (HKD)|
|Linked currency||Australian Dollar (AUD)|
|Deposit placed on||13 November 2012|
|Deposit date||15 November 2012|
|Fixing date||27 November 2012|
|Maturity date||29 November 2012|
|Interest period||14 days|
|Deposit Plus Interest rate||13.12%p.a.|
If the AUD/HKD exchange rate is at or above 8.1043 at fixing, the principal and interest will be paid in HKD.
If the AUD/HKD exchange rate is below 8.1043 at fixing, the principal and interest will be paid in AUD.
^Based on indicative pricing quoted on 13 November 2012.
*The above scenarios are for reference only. Return depends upon the market conditions on the fixing date.
&Interest = principal x interest rate p.a. x tenor (in number of days) / [365 days (if deposit currency is HKD, SGD or GBP) or 360 days (if deposit currency is other foreign currencies)].
§Assume the deposit is converted back to HKD upon maturity and the exchange rate equals to the rate upon fixing.
In this worst payout scenario, you will receive return or the linked currency the value of which may be worth substantially less than the original amount you invested (and in the extreme case could be worth nothing).