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Compute the probability that the S&P 500 index value is greater than 2,400 in 1 year according to the Black Scholes model. Assume that the
Compute the probability that the S&P 500 index value is greater than 2,400 in 1 year according to the Black Scholes model. Assume that the current level of the index is 2,200, the risk-free rate is 2% per annum, the dividend yield on the index is 1% per annum, and the volatility of the index is 20%.
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