What is the difference between market (trading) price and closing indicative value for ELEMENTS?
The market (trading) price for ELEMENTS is the bid or ask price based on supply and demand of each ELEMENTS on the relevant U.S. securities exchange. On the other hand, the term “indicative value” is used to refer to the value at a given time determined based on the following equation for Equity- and Commodity-linked ELEMENTS (for Currency-linked-ELEMENTS, refer to the specific currency product pages): Closing Indicative Value = $10 X (Closing Index Level / Initial Index Level) X Current Fee Factor where: Closing Index Level = The most recent published closing level of the index available; Initial Index Level = The closing level of index on the inception date; and Current Fee Factor = One minus the product of (i) the annual investor fee and (ii) the number of days elapsed from the inception date to and including the applicable date divided by 365.
