1. TD Canada Trust currently offers a "Market Growth" Guaranteed Investment Certificate (GIC). This GIC has a 3-year term, and provides the following returns:

   • - The minimum return is 1% (Note that this is 1% per 3 years, not 1% p.a.).

   • - The return is linked to the performance of the S&P/TSX60 index over the 3-

     year term, with the maximum return of 8.88% (per 3 years).

     Suppose that the current level of the S&P/TSX60 index is 800. Please describe how you would replicate the payoff of this GIC (assuming an initial investment of $100).