hsbc is designing a new saving product that is linked to FTSE100. The product pays the customer
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hsbc is designing a new saving product that is linked to FTSE100. The product pays the customer 5% if the return of FTSE100 in the coming year exceeds a threshold value b, and pays 0 otherwise. Market survey suggests that such a product is attractive only when its expected average return exceeds 2%. What should value b be?
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Related Book For
Finite Mathematics and Its Applications
ISBN: 978-0134768632
12th edition
Authors: Larry J. Goldstein, David I. Schneider, Martha J. Siegel, Steven Hair
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