New Issue: JPMorgan sells $789,000 10% upside auto callable reverse exchangeables on Bank of America

By Angela McDaniels

Tacoma, Wash., Aug. 17 - JPMorgan Chase & Co. priced $789,000 of 10% upside auto callable single observation reverse exchangeable notes due Aug. 18, 2011 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.

The notes will be called at par if Bank of America stock closes above the initial share price on Nov. 18, Feb. 18, 2011, May 18, 2011 or Aug. 18, 2011.

The payout at maturity will be par unless the final share price is less than 70% of 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 value in cash.

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

Issuer:	JPMorgan Chase & Co.
Issue:	Upside auto callable single observation reverse exchangeable notes
Underlying stock:	Bank of America Corp. (NYSE: BAC)
Amount:	$789,000
Maturity:	Aug. 18, 2011
Coupon:	10%, payable monthly
Price:	Par
Payout at maturity:	If final share price is less than 70% of initial share price, 75.5858 Bank of America shares or the cash value thereof; otherwise, par
Call:	Automatically at par if Bank of America stock closes above initial share price on Nov. 18, Feb. 18, 2011, May 18, 2011 or Aug. 18, 2011
Initial share price:	$13.23
Pricing date:	Aug. 13
Settlement date:	Aug. 18
Agent:	J.P. Morgan Securities Inc.
Fees:	3.9%
Cusip:	48124AYZ4

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