This transaction comprises a strip of AUD/USD 1x2 Target Redemption Forwards. For each
Reference Date in respect of which the Underlying Index sets below the Strike as of the
Reference Time, and on which a Termination Event has not occurred, the client takes a
short AUD long USD spot position of AUD 25,000 at the Strike with delivery on the relevant
Settlement Date.
For each Reference Date in respect of which the Underlying Index sets at or above the Strike
as of the Reference Time, and on which a Termination Event has not occurred, the client
takes a short AUD long USD spot position of AUD 50,000 at the Strike with delivery on the
relevant Settlement Date.
If a Termination Event is determined to have occurred on a Reference Date, the client will take
a short AUD long USD position for that date for a fraction of AUD 25,000 (further details
specified below), but neither party will assume any position for any subsequently occurring
Reference Dates, and no further deliveries will be made in respect of each Forward.