Explanation of Peak Values

The peak value is the value that GDP will be compared against to calculate the percentage change in GDP each quarter. If GDP has declined by the amount specified in the contract (either -10.0%, -15.0% or -10.0%) from this peak value then the contract will expire at 100.

The current peak value is Q3 2008. The GDP figure for that quarter was $14,412.8 billion.

If any quarterly GDP figure is greater than the current peak value then a new peak value will be established. GDP will then need to decline by the specified amount from this new peak value for the contract to expire at 100.

For example...

The current peak value is Q3 of 2008. The GDP figure for that quarter was $14,412.8 billion. If GDP declines by more than 10.0% from this peak value then the -10% contract will expire at 100.

Lets say that for Q2 of 2009 the GDP figure is $15,025.7 billion. This is greater than the current peak value of $14,415.8 and therefore becomes the new peak value. GDP will now need to decline by 10.0% or more from this new peak value for the -10.0% contract to expire at 100.