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An index provides a dividend yield of 1 % and has a volatility of 2 0 % . The risk - free interest rate is

An index provides a dividend yield of

1 %

and has a volatility of

20 % .

The risk

-

free interest rate is

4 % .

How long does a principal

-

protected note, have to last for it to be profitable for the bank issuing it

?

Use DerivaGem.

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