Question: Let KT = S0erT. Compute Pr(ST KT) for a variety of T s from 0.25 to 25 years. How do the probabilities behave? How do

Let KT = S0erT. Compute Pr(ST KT) for a variety of T s from 0.25 to 25 years. How do the probabilities behave? How do you reconcile your answer with the fact that both call and put prices increase with time?

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