TURBO and SHORT CERTIFICATES

BR0CHURE NEW

To leave from the 6 June 2002 on the Mcw two new tipologie of emitted financial products from Abn Amro in a position to centralizing the interest of the investor are available: Turbo certificates and the Short certificates.

Turbo certificates is tito them derives to you that, reproducing in linear way the below index, they allow to benefit of the increase of the securities market taking advantage of the moltiplicativo effect of the lever financial institution, but with the presence of a level of stop loss, caught up which the title it is extinguished and the MILIMETER it is engaged to reimburse an equal sum to differentiates them between strike and price spot more one member, said Funding, that it represents the cost of the financing of the operation and that traces that that happens also when it is invested on the Fib30. This cost comes defined like the difference between the same price of same exercise tout court and strike the price ones, brought up-to-date to the interest rate (below Euribor or Libor for in dollars) more upon maturity increased neighbor than 1 point. The value of reimbursement in case of stop loss, determined with the formula seen previously, comes calculated on the touched minimal price from the below between the day in which it has been touched the stop loss and the successive day. In practical but up to now the Abn Amro it has always reimbursed a higher value, defined on the base of the price to which the same market maker it had closed the own cover, leaving the opportunity to the traders rivendere endured on the market (until the sitting in which it has been touched stop loss) the stoppato product, without to attend canonical the 9 days for the rimborso.Come for the futures and for the cw of type call, the variation percentage of these instruments is advanced regarding that one of the below, but their operation is the much simplest one: if the below knows them (or comes down) of 100 points, the vaore of Turbo certificates it knows them also it of 100 points. The price of these products therefore is not influenced neither from the volatilità neither passing of the time.

The Short certificates (9 quoted products) are instruments derive to you that they reproduce in linear way, but in inverse sense, the course of the below index, concurring to benefit of the reduction of the securities market, always taking advantage of the effect lever. A product of this type retort, in short, a position of sale of future on share indices, with in more added than a mechanism that ago extinguishing anticipatamente the title it if a predetermined level of the index comes caught up or exceeded (stop loss). The theoretical price pre the Short (with the exception of that calculating for Turbo) is defined like price and vaore difference between strike spot of the below, multiplied for multiple (es. 0.0001 for the Mib30).

Both the instruments, therefore, preview a stop loss, than it differentiates them from the simple ones futures on indices: in such a way the investor is mainly protected in the sense that the eventual final loss, with the exception of how much happens exactly for the futures, cannot never exceed the amount initially invested. As far as the facility of negotiation of these products, Abn Amro is engaged to maintain bid-ask spread a much generally inferior bottom and to 1%. Limited Spread and absence of volatilità do not mean however risk limited to the course of the below, from the moment that also with these instruments takes place inefficiencies, which the delays in the modernization of the prices from part of the market maker.

Edited by   Riccardo Catalani

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This situated one must be meant like information source and cannot, in no case, considered being an offer or one sollicitation to the purchase or the sale of issues. The contained information in this study are fruit of news and opinions that can anytime be modified without warning.