An S&P 500 index linked CD matures in 4 years, with the face value the same as the current S&P 500 index price, $ 2400. Upon its maturity, the investor will be paid back the face value, plus 60% of the gain on the S&P 500 index. The S&P 500 continuous dividend yield is 1.5% and continuously compounded risk-free rate is 4%. The S&P 500 volatility is 25%. What is the fair value of this CD? $ 2215.48 $ 2305.90 $ 2351.73 $ 2612.48 An S&P 500 index linked CD matures in 4 years, with the face value the same as the current S&P 500 index price, $ 2400. Upon its maturity, the investor will be paid back the face value, plus 60% of the gain on the S&P 500 index. The S&P 500 continuous dividend yield is 1.5% and continuously compounded risk-free rate is 4%. The S&P 500 volatility is 25%. What is the fair value of this CD? $ 2215.48 $ 2305.90 $ 2351.73 $ 2612.48