A Principal protected note (PPN) is an investment contract with a guaranteed rate of return of at least the amount invested, and a possible gain.
Example
A common type of PPN is the stock plus option type. Its return equals PPN_T=100+A(S_T-K)^+ at maturity for underlying call options. Where A is a multiplication factor set in the contract, S_T is the stock price at maturity, and K is the option's strike price. ==See also==