608 Part V: Index Options and Future; 
FIGURE 32-4. 
Comparison of adiusted and unadiusted cash values at maturity. 
50 
40 
20 
0 1100 2200 3300 
Cost of the 
Call Option 
4400 5500 
Index Final Price (Unadjusted) 
6600 
est. In this section, a couple of different constructs, ones that have been brought to 
the public marketplace in the past, are discussed. 
THE BUI.I. SPREAD 
Several structured products have represented a bull spread, in effect. In some cases, 
the structured product terms are stated just like those of a call spread in that the final 
cash value is defined with both a minimum and a maximum value. For example, it 
might be described something like this: 
"The final cash value of the (structured) product is equal to a minimum of a base 
price of 10, plus any appreciation of the underlying index above the striking price, 
subject to a maximum price of 20" (where the striking price is stated elsewhere). 
It's fairly simple to see how this resembles a bull spread: The worst you can do 
is to get back your $10, which is presumably the initial offering price, just as in any 
of the structured products described previously in this chapter. Then, above that, 
you'd get some appreciation of the index price above the stated striking price - again