What are CBBC?
Callable Bull/Bear Contracts (CBBC) are structured products or derivative products that track the performance of an underlying asset (or assets). They are issued either as Bull or Bear contracts, allowing investors to take bullish (Bull Contract) or bearish (Bear Contract) positions on the underlying asset with a relatively small capital outlay. CBBC expire at a fixed date. However, during their life, they may be called immediately by the issuers if the price of the underlying asset reaches a given level, known as the Call Price, before expiry. The Call Price is lower than the Spot Price at the time of issue for a Bull Contract whereas the Call Price is higher than the Spot Price at the time of issue for a Bear Contract. There are two categories of CBBC: those with no residual value (N) and those with a possibility of residual value (R). Once the price of the underlying asset of a CBBC reaches the Call Price, a category N CBBC becomes worthless while a category R CBBC may still be enti
