The Brent Crude oil certificate NL0000202109 currently has a value of ca. 26.50 EUR, whereas the price of the commodity is at 48 USD, a substantial difference. I would expect the certificate's value to be about the same as that of the commodity.

Can someone explain the huge difference in price?

Screenshot of price as of 2015-01-26 WET

  • According to the info on that page and in the Find out more link on the right, it sounds like these certificates are priced arbitrarily relative to the underlying instrument. This certificate appears to be priced around 62% of the underlying instrument. But I've never heard of certificates before, so I'm just guessing. – dg99 Jan 26 '15 at 20:57
  • @dg99 Arbitrary pricing could be the explanation. However, why would the issuer do that? It's confusing to me, and I'm worried that I don't understand an important aspect of that certificate, or certificates in general. – feklee Jan 27 '15 at 12:10
  • Yes, I imagine the pricing is spelled out in the fine print somewhere, but I couldn't find said fine print on that page. – dg99 Jan 27 '15 at 16:20

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