New Issue: JPMorgan prices $256,000 10.5% reverse exchangeables linked to Bank of America

By Susanna Moon

Chicago, May 6 - JPMorgan Chase & Co. priced $256,000 of 10.5% reverse exchangeable notes due Nov. 7, 2008 linked to the common stock of Bank of America Corp., according to a 424B2 filing with the Securities and Exchange Commission.

Interest is payable monthly.

Payout at maturity will be par unless Bank of America stock falls by more than 25% during the life of the notes and finishes below the initial share price, in which case the payout will be a number of Bank of America shares equal to $1,000 divided by the initial share price or, at JPMorgan's option, the equivalent cash value.

J.P. Morgan Securities Inc. is the agent.

Issuer:	JPMorgan Chase & Co.
Issue:	Reverse exchangeable notes
Underlying stock:	Bank of America Corp. (NYSE: BAC)
Amount:	$256,000
Maturity:	Nov. 7, 2008
Coupon:	10.5%, payable monthly
Price:	Par
Payout at maturity:	If Bank of America stock falls by more than the protection amount during the life of the notes and finishes below the initial share price, 25.1319 Bank of America shares; otherwise, par
Initial share price:	$39.79
Protection amount:	$9.9475, or 25% of initial share price
Pricing date:	May 2
Settlement date:	May 7
Agent:	J.P. Morgan Securities Inc.
Fees:	2.464%, including 1.982% for selling concessions

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