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Constructing a portfolio from a Discount Certificate

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5/5/16
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Consider the attached UBS Discount Certificate on the Allianz share

I'm trying to construct a portfolio consisting of options and underlying Allianz shares which represents (i.e. has equivalent cash flows at maturity) this Discount Certificate.

What are the exercise price, initial call option price, and maturity of the option?
 

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  • Allianz Discount Certificate.pdf
    212 KB · Views: 56
Are you familiar with options?

Look at the redemption section of your document...

Draw the payoff at maturity function of the underlying price.

This shouldn't be too hard...
 
I'm not too familiar with options, I'm still not sure what I have to do. Are you able to offer any further advice?
 
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