A deposit instrument offered by a bank guarantees that investors will receive a return during a $6-$month period that is greater between zero and $40\%$ of the return provided by a market index.

An investor is planning to put $$100,000$ into the instrument.

Assuming that the risk$-$free rate of interest is $8\%$ per annum, the dividend yield on the index is $3\%$ per annum, and the volatility of the index is $25\%$ per annum.

Is the product a good deal for the investor?

Cannot be determined

Yes

No