Stocks
JPMorgan Chase Issues Notes Based on Estimated Value and Hedging Costs
JPMorgan Chase & Co. has issued notes that reflect the risk-return profile and market exposure of a specific stock, according to StreetInsider.
The original issue price of these notes is equal to their estimated value plus or minus the projected profits or losses expected by JPMorgan's affiliates for assuming hedging risks, as well as the costs of hedging and third-party fees.
The validity of these notes has been verified by Davis Polk & Wardwell LLP, which states that when issued, they will be valid and binding obligations of JPMorgan Financial and its guarantee will constitute a valid and binding obligation of JPMorgan Chase & Co., subject to applicable laws.