Question: Compute the probability that the S&P 500 index is greater than 2,300 in 6 months according to the Black Schools model. Assume that the current

Compute the probability that the S&P 500 index is greater than 2,300 in 6 months according to the Black Schools model. Assume that the current level of the index is 2,200, the risk-free rate is 1% per annum, the dividend yield on the index is 2% per annum, and the volatility of the index is 25%.

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