The Bank of California is offering a structured product that guarantees the return of 80% of the investor's capital at the end of 5 years. The continuously compounded interest rate is r=0.05. The index underlying the structured product is currently at 1200 (i.e. S0=1200 ). The current market price of one at-the-money European call option on the underlying index expiring in 5 years is $320. Assuming that the Bank of California charges the investor nothing for this contract (other than the amount that is deposited), compute the participation rate for this structured product and provide a brief description of how put and call options are used to create this product