TRANSFER OR ROLLOVER YOUR IRA OR KEOGH Because the return is based on TO CITIBANK'S NEW FDIC INSURED ACCOUNT. stock market movement over a full five

In the attached newspaper page advertising Citibank's "Stock Index Insured Account", the bank promises "Stock Market Returns. Zero Risk to Principal." 

a.               What is the cost to the investor for buying this product? For example, consider what the investor loses in comparison to a regular CD? Similarly, what does the investor lose in comparison to an investment in the S&P 500 Index Fund?

b.              Explain why an investor might be interested in this product. Why would Citibank offer such a product?

c.               What is the risk exposure to the bank from offering this product? How might the bank hedge this risk exposure?