Bond plus option
In finance, a Bond+Option is a capital guarantee product that provides an investor with a fixed, predetermined participation to an option. Buying the zero coupon bond ensures the guarantee of the capital, and the remaining proceeds are used to buy an option.
As an example, we can consider a bond+call on 5 years, with Nokia as an underlying. Say it is a USD currency option, and that 5 year rates are 4.7%. That gives you a zero coupon value of
