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Show that the probability that a European call option on an NDP asset will be exercised in a risk-neutral world is, with the notation we
Show that the probability that a European call option on an NDP asset will be exercised in a risk-neutral world is, with the notation we have used throughout the term, equal to.
Hint: For any positive random variable X, the probability that X>c (where c is a positive constant) is the same as the probability that ln(X) > ln(c).
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