I need the answer of the following question: What would happen to the profitability per...
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I need the answer of the following question:
What would happen to the profitability per note if Risk Based Capital (RBC) increased the term to three (3) years?
1 This is the RBC Buffered Bullish Enhanced Return Note 2013-2015 2 NPUT VALUES FOR DIVIDEND YIELD APPROACH 1000 Underlying Bond Face Bond YTM 1000 1.50% B(0) 1000 970.203 DTM 726 Maximum Net Premium 29.79705 2.016667 Option Portfolio 0.0025 0.12 0.12 0.00 25 0.0144 10 DivYMd 0.02 Dividend Yield 11 VALUE OF A CALL Bank Profit 27,57841 13 -0.12189 14 N(d) 0.451493 DAYS TO MATURITY 8/28/13 -0.2923 16 N(d2) 0.385028 8/24/15 17 994.971 19 50.55335 20 VALUE OF A PUT 21 N(-d) 0.548507 22 N (-d2) 0.614972 23 85.05514 c -sel-gt)+ Ke 24 2.00% INPIUT VALUES FOR INPUT VALUESFOR Underlying Underlying 1000 1000 9000 1162 DTM 726 DTM 726 2.016667 2.016667 0.0025 0.0025 0.12 0.12 0.0144 0.0144 DivYMd 0.02 DivYld 0.02 VALUE OF A CALL VALUE OF A CALL 0.496381 -1.00295 0.690187 N(du) 0.157942 N(d) 0.325969 1.17336 N(d2) 0.120325 N(d2) 0.627776 895.4739 1156.156 100.7462 12.58384 VALUE OF A PUT VALUE OF A PUT N (-d) NG-di) 0.842058 0.309813 N (-d2) 0.372224 NG-d) 0.879675 35.75088 208.2709 35.75088 208.2709 1 This is the RBC Buffered Bullish Enhanced Return Note 2013-2015 2 NPUT VALUES FOR DIVIDEND YIELD APPROACH 1000 Underlying Bond Face Bond YTM 1000 1.50% B(0) 1000 970.203 DTM 726 Maximum Net Premium 29.79705 2.016667 Option Portfolio 0.0025 0.12 0.12 0.00 25 0.0144 10 DivYMd 0.02 Dividend Yield 11 VALUE OF A CALL Bank Profit 27,57841 13 -0.12189 14 N(d) 0.451493 DAYS TO MATURITY 8/28/13 -0.2923 16 N(d2) 0.385028 8/24/15 17 994.971 19 50.55335 20 VALUE OF A PUT 21 N(-d) 0.548507 22 N (-d2) 0.614972 23 85.05514 c -sel-gt)+ Ke 24 2.00% INPIUT VALUES FOR INPUT VALUESFOR Underlying Underlying 1000 1000 9000 1162 DTM 726 DTM 726 2.016667 2.016667 0.0025 0.0025 0.12 0.12 0.0144 0.0144 DivYMd 0.02 DivYld 0.02 VALUE OF A CALL VALUE OF A CALL 0.496381 -1.00295 0.690187 N(du) 0.157942 N(d) 0.325969 1.17336 N(d2) 0.120325 N(d2) 0.627776 895.4739 1156.156 100.7462 12.58384 VALUE OF A PUT VALUE OF A PUT N (-d) NG-di) 0.842058 0.309813 N (-d2) 0.372224 NG-d) 0.879675 35.75088 208.2709 35.75088 208.2709
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