You are structuring an ELN as following: (1) Investment principal = $100,000; (2) Maturity = 3 years; (3) Principal preservation ratio = 99%; (4) Interest rate = 2.8726% p.a.; (continuously compounded/discounted); (5) Current stock index level = 100; (6) European call options' multiplier = $100; (7) European call option(K=100, T=3)'s premium = $20.88; (8) European call option(K=109, T=3)'s premium = $17.14 [Fractional option size is allowed for precision in calculation.] [i] If you use European call option(K=100, T=3), how much is the maximum upside participation ratio if stock index rises to higher than 100 after 3 years? (Here the upside is limited to the region of ST > 100) [ii] If you use European call option(K=109, T=3), how much is the maximum upside participation ratio if stock index rises to higher than 109 after 3 years? (Here the upside is limited to the region of ST > 109) [iii] At which level of stock price at maturity (= S > 109), will the final payoff from the ELN be equal in case [i] and [ii]? You are structuring an ELN as following: (1) Investment principal = $100,000; (2) Maturity = 3 years; (3) Principal preservation ratio = 99%; (4) Interest rate = 2.8726% p.a.; (continuously compounded/discounted); (5) Current stock index level = 100; (6) European call options' multiplier = $100; (7) European call option(K=100, T=3)'s premium = $20.88; (8) European call option(K=109, T=3)'s premium = $17.14 [Fractional option size is allowed for precision in calculation.] [i] If you use European call option(K=100, T=3), how much is the maximum upside participation ratio if stock index rises to higher than 100 after 3 years? (Here the upside is limited to the region of ST > 100) [ii] If you use European call option(K=109, T=3), how much is the maximum upside participation ratio if stock index rises to higher than 109 after 3 years? (Here the upside is limited to the region of ST > 109) [iii] At which level of stock price at maturity (= S > 109), will the final payoff from the ELN be equal in case [i] and [ii]