Please help, will like the answer!

Recall the index-linked GIC that we discussed in class. The GIC has a maturity of 3 years and its payoff per a $100 investment is as follows. Suppose the S\&P/TSE 60 is currently 800 . For an investment of $100, you'll get: Suppose that the TSE 60 index follows a geometric Brownian motion with an expected return of 8% p.a. and a standard deviation of 20% p.a. Suppose also that the dividend yield on the index is zero (i.e., no dividend), and that the risk-free rate is 4% p.a. for all terms. (a) (3 points) Is this GIC fairly priced? (b) ( 2 points) What is the real-world probability that the payoff in 3 years will be greater than $100 but less than $130