Bonds Enabling Annual Retirement Savings (BEARS)

Definition:

Holders of BEARS receive the face value of the bonds underlying call option, which is exercised by CUBS (an acronym for Calls Underwritten by Swanbrook). If the calls are exercised by CUBS, BEARS holders receive the total of the exercise price.

Investing Essentials


Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

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