How is the residual value of a category R CBBC (i.e. with residual value) calculated?
Once the price the underlying asset of a CBBC reaches, falls below (for Bull Contract) or rises above (for Bear Contract) the Call Price, a category R CBBC may receive a residual payment from the issuer. The residual payment is based on the minimum (for Bull Contract) or maximum trade price (for Bear Contract) of the underlying asset during the period between the occurrence of the Mandatory Call Event and the end of the next trading session, subject to the final announcement by the issuer in respect of its actual payout. In cases where the minimum price of the underlying asset of a Bull Contract reaches or falls below the Strike Price, or the maximum price of the underlying asset of a Bear Contract reaches or exceeds the Strike Price, there will not be any residual payment.
