Description Buffered Capped Return LD Terminal Value Figure 1: Buffer Capped Return Structure Assignment #1 Observe the Buffered Capped Return structure in figure 1. At maturity, the structure is in the money if the underlying value is greater than or equal to the current index level. Returns are, however, capped if the underlying index is greater than 120% of the current index value. A buffer of 20% is available and if the index declines by more, the investor incurs a loss. A macro enabled spreadsheet is provided for this assignment. Download this spreadsheet from Canvas. For convenience, stub functions (where you will insert your code) are provided and helper functions have been implemented. Your task is to fill in the appropriate code. Please do not modify the worksheet that has already been created. You are encouraged to experiment and try out different values but please do so on a separate worksheet. Deliverables 1. Write down the components that make up the note structure. 2. Write the closed-form equation for the above structure. Assume European options. Note: Credit for this question is contingent upon answering #1 correctly. 3. Implement the closed-form equation of the structure in your spreadsheet. A stub function has already been created and all you have to do is write your formula by making use of the functions that have been provided. 1. Within the same spreadsheet, implement your Monte Carlo simulation. Compute the value of the instrument as well as the standard error. For convenience, a function for generating random terminal stock prices has already been provided