Certificate in which the investor participates in the price increase of an underlying asset depending on the participation factor. – Losses of the underlying asset are cushioned up to an agreed threshold. If the underlying asset is quoted above the strike price at maturity, the investor receives the equivalent amount. If the underlying is below the strike price at maturity, the redemption factor becomes more important. This is calculated by dividing the strike price by the hedging level. – The redemption factor is usually expressed as a percentage; multiplication by the strike price then results in the amount repayable to the investor at maturity. Airbag certificates usually have a term of four to five years. – As with almost all basic types, there are numerous variants of this certificate. In the case of the airbag plus certificate, for example, participation in price increases is limited by a cap; this disadvantage is compensated for by a higher
Participation factor balanced. – See Bonus Certificate, Discount Certificate, Express Certificate, Guarantee Certificate, Leverage Certificate, Outperformance Certificate, Participation Certificate, Safety Lock, Sprint Certificate, Twin Win Certificate, Certificate.

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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
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https://www.gerhardmerk.de/

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