An index provides a dividend yield of 1% and has a volatility of 20%. The risk-free interest

Question:

An index provides a yield of 1% and has a volatility of 20%. The risk-free interest rate is 4%. How long does a principal-protected note, created as in Example 11.1, have to last for it to be profitable for the bank issuing it? Use DerivaGem. Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...