Sarah and Albert each invested $10,000 in an index-linked principal-protected (PPN) note on the same underlying index. Sarah' PPN had 75% participation rate. Albert's note had a 50% performance cap.

Required:

i)If the underlying indexed appreciated from a level of 750 to 1000 at the time of the PPN's maturity, who had the higher return, Sarah or Albert?

Answer rating: 100% (QA)

To determine who had the higher return between Sarah and Albert we need to calculate the return on t... View the full answer