menu.jpg
 


"Currency-Linked Deposit" is a deposit that is linked with a foreign currency return, and provided investors an alternative investment choice between normal time deposit and direct investment into foreign exchange or ordinary share.

You can choose the most suitable foreign currency deposit combination and deposit period according to your financial needs and the forecast of foreign exchange market flow.

Currency:  AUD, CAD, NZD, GBP, EUR, HKD, or USD is available (the currency of each group must be HKD or USD)
Deposit duration:  7 days to 3 months accordingly

With "Currency-Linked Deposit", you can choose your preference foreign currency to link with the time deposit and preset the deposit period and "Strike Price". At maturity, if the value of the linked instrument is below the strike price, your deposit amount and interest earned will then be used to buy the linked foreign currency or share at the strike price. 

Investment Example

Deposit Currency

HKD

Strike

5.703 (AUD1=HKD5.703)

Linked Currency

AUD

Determine Date

21st May 2004

Deposit Amount

HKD100,000

Maturity Date

23rd May 2004

Duration

16 days

Interest Rate

7.87%

Determine Date

7th May 2004

Return Analysis

Settlement Strike

Strike Price

Maturity Return

Net Gain / (Loss)

Case 1: AUD vs HKD rise/unchanged

5.703 or higher

5.703

HKD100,344.99

HKD344.99

Case 2: AUD vs HKD fall by 0.44%

5.695

5.703

AUD17,595.12 (equals HKD100,204.23)

HKD204.23

Case 3: AUD vs HKD fall by 0.84%

5.655

5.703

AUD17,595.12 (equals HKD99,500.40)

(HKD499.60)

*Calculation formula: AUD
Note :   The above market situation is for reference only.  Return depends on the actual market condition on the settlement day.

 
LUSO INTERNATIONAL BANKING LTD.
Copyright © LusoBank 2007. All rights reserved.