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A bank has sold a product that offers investors the total return on a index over a one year period The maximum

Question

A bank has sold a product that offers investors the total return on a index over a one year period. The maximum

return on the product is 33 percent. If the value of the index declines, the original investment is returned. What option position is equivalent to the product and explain in detail how you would value the product.

Finance

A bank has sold a product that offers investors the total return on a index over a one year period The maximum