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    Hey guys, does anybody know how to derive the payoff for a equity linked note. I understand it is a package of a zero coupon bond and a call option. but does anyone know how to derive the payoff? thanks
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    Umm unless you need to price it it should be really simple? zero coupon and call option? what's difficult about that?
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    Hint:

    Payoff when S>E Par

    Payoff when S<E n * S

    n(S-c) , c is call premium

    n * E = Par

    and

    x=n(S-C)

    Answer for ELN Payoff:

    n=Par/E
 
 
 
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