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What is the payout of an MLCD at maturity?

At maturity, investors receive the full initial amount invested plus an additional amount based on the return of the underlier. For more details on exact payments at maturity, please read the applicable offering document of any investments you choose to make.

The return of the underlier is calculated as follows:

  • The Initial Level is typically the closing price of the underlier on trade date
  • The Final Level is typically the closing price of the underlier on the determination date.
  • The trade date, determination date, Initial Level and Final Level of the underlier are always specified in the accompanying offering document of any investment you choose to make.
  • The Max in the formula indicates that the investor will only participate in positive returns of the underlier.

In some cases, the performance is also multiplied by a participation rate that may be greater than 100%, allowing you to earn an enhanced return.

For full details, please read the applicable offering document of any investments you choose to make.