The Guaranteed Capital Protection Plan or Guaranteed Capital Protection Feature is structured within the SPAC and implemented through one or more of the following options:
- Straddle Strategy: a simultaneous purchase of options to buy and to sell a security at a fixed price, allowing the purchaser to make a profit whether the price of the security goes up or down.
- Zero-Coupon Strategy: a zero-coupon bond is a debt security that does not pay interest but instead trades at a deep discount, rendering a profit at maturity, when the bond is redeemed for its full face value.