It's a case study on Risk management and asset pricing. I have attached the document

Answer to Question 1 –
Banks can construct this type of product using the exposure in equity market and partial exposure in the debt market or fixed income product. This will ensure that the desired return is achieved in the event of maturity.
Products structure includes a prepackaged investment plan which includes an asset that is linked to interest plus scheme and one or more derivatives. The derivative portion is generally linked with basket of securities that is designed to assure the risk and return assured. The return from such asset is usually depends on the underlying asset and that is why the returns on such products are issued at the time of maturity.     
Answer to Question 2 –
The type of option strategy that is built-in the product is if the return on underlying asset is positive the return for investor will be doubled, however if the return on underlying asset the loss will be to the extent of principal and no other negative leverage. The strategy that will be used will be mildly bullish.
Option trading strategies include Long call, Long put, Naked short call, Naked short put, Covered Write, Bull Spreads and Bear Spreads.
Bull spreads and bear spreads are the strategies used in the event of abnormal situations or unusual events where it is expected that there will be extremely high volatility in the stock markets and the market will go on either of the sides. In such a situation there will be gain in bull spread or bear spread and other call or put may not make any profits.
Answer to Question 3 –
Embedded option strategy is a specific option strategy designed as per the need of investor. Every investor has separated needs of income and this strategy helps in fulfilling such needs. In embedded option strategy the option value is inseparable from the value of issue. The value of option is added or reduced from the core securities.
To find out call option price we shall use black and sholes formula as follows –
C=St​N(d1​) −Ke−rtN(d2​)
where: d1​=σs​ t​lnKSt​​+(r+2σv2​​) t​ and
d2​=d1​−σs​ t​where:C=Call option price
S=Current stock (or other underlying) price
K=Strike price
r=Risk-free interest rate
t=Time to maturity
N=A normal distribution​
Let us assume following –
Stock Price – 60
Strike price – 58
Volatility – 20%
Risk free rate – 3.5%
Term – 0.5
Dividend yield – 1.25%
Now to calculate D1...