Explain the statement at the end of Section 12.1 that, when dividends are zero, the principal protected

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Explain the statement at the end of Section 12.1 that, when dividends are zero, the principal protected note cannot be profitable for the bank no matter how long it lasts.

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Options Futures and Other Derivatives

ISBN: 978-0134472089

10th edition

Authors: John C. Hull

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Question Posted: Feb 12, 2018 11:13 AM

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Explain the statement at the end of Section 12.1 that, when dividends are zero, the principal protected

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If volatility is zero the option to purchase the stock portfolio for 1000 wh...View the full answer

Options Futures and Other Derivatives

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