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Question 7 A bank offers their customers a one-year investment that pays out the return of the FTSElOO index if the FTSE is up 5%

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Question 7 A bank offers their customers a one-year investment that pays out the return of the FTSElOO index if the FTSE is up 5% or more, but their total return is capped at 15%. If the FTSElOO is down, or up by less than 5% the customer will get their initial investment back in full. How might such an investment product be structured? Why might it be difficult to issue such a product in todays market environment

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