Customized Upside Basket Securities (q. V.). Bear Stearns's proprietary debt securities, with participation in moves in an average over time of the index value of a basket of securities, but with downside protection. The underlying average equals an arithmetic average of the index values on the 24th of each month from issue through maturity. Thus, the underlying price is an average, and any optionality is an option on an arithmetic average. The holder may not redeem' CUBS' before maturity. For example, Bear Stearns listed a CUBS issue on 7/25/95 that matures on 7/24/98. The underlying index is a mischmasch of biotech, energy, and other stocks. The CUBS issue price is $3. 33. The CUBS gives 90% participation in price moves. The minimum payoff is $3. 00.
|APA||Barry Goldsmith. (2010). cubs. Retrieved February 17, 2019, from http://smartdefine.org/cubs/definitions/1151229|
|Chicago||Barry Goldsmith. 2010. "cubs" http://smartdefine.org/cubs/definitions/1151229 (accessed February 17, 2019).|
|Harvard||Barry Goldsmith 2010, cubs, Smart Define, viewed 17 February, 2019, <http://smartdefine.org/cubs/definitions/1151229>.|
|MLA||Barry Goldsmith. "cubs" 21 October 2010. Web. 17 February 2019. <http://smartdefine.org/cubs/definitions/1151229>|