The difference between Inline Warrants, Standard Warrants and CBBCs

Inline Warrants Standard Warrants CBBCs
Mandatory Call Event No No Yes
Underlying Asset Price Close to the midpoint of upper and lower strike range : : Call, Put : Bull, Bear
Away from the midpoint of upper and lower strike range: : Call, Put : Bull, Bear
Implied Volatility IV : ITROTR IV Call & Put Insignificant to price of CBBCs
IV : ITROTR IV Call & Put
Time Value Time to expiry :
ITROTR
Time to expiry :
Call & Put
Insignificant to price of CBBCs
Time to expiry :
ITROTR
Time to expiry :
Call & Put
Maximum Loss* Cost of Inline Warrants – HK$0.25 (Per share) Initial investment amount Initial investment amount
Maximum Profit* HK$1.00 - Cost of Inline Warrants (Per share) Unlimited Unlimited

ITR – In-The-Range
OTR – Out-Of-The-Range
IV – Implied Volatility
*Transaction costs (such as broker fees) are not included

To understand the risk of trading a structured product, please refer to the full disclaimer at https://www.jpmhkwarrants.com/en_hk/disclaimer.

Disclaimer: The structured products mentioned in this information are not secured on any collateral. If the Issuer and its guarantor are insolvent or default, investors may not recover part or all of the amount due. This information provided by J.P. Morgan Securities (Asia Pacific) Limited (“J.P. Morgan”) is for information and discussion purposes only and is not intended as an offer, invitation, inducement, advice, recommendation or solicitation for the purchase or sale of any financial instrument nor does it constitute a commitment by J.P. Morgan or its affiliates to enter into any transaction. Past performance is not indicative of future results. The price of the structured products may fall in value as rapidly as it may rise and investors may sustain a total loss of their principal invested. Inline warrants have been newly introduced to the market since July 2019 and no similar products are listed on the Stock Exchange for comparison. Investors must make their own risk assessment and where necessary, seek professional advice. Investor should not invest in these structured products unless they carefully read and understand the terms and conditions, risk factors and other information as set out in the listing documents, and fully understand and are willing to assume the risks associated with them. J.P. Morgan and its affiliates do not act as a fiduciary for or an advisor to any investor. It is not possible to predict the liquidity in the secondary market for the Structured Products. J.P. Morgan Broking (Hong Kong) Limited is a dealer and liquidity provider for warrants, inline warrants, CBBCs and/or exchange traded fund. This information is only directed at and intended for residents of Hong Kong only and is not for distribution to any person or entity in any jurisdiction. J.P. Morgan disclaims all responsibility if you obtain any information that is in breach of any law of the country in which you are residing. Not all products and services are available in all geographical areas. You can read the full disclaimer at https://jpmhkwarrants.com/en_hk/disclaimer.