Question: Take as given the conditions described in the previous problem, and suppose the risk-free interest rate is 6% per year. You are contemplating investing $107.55

Take as given the conditions described in the previous problem, and suppose the risk-free interest rate is 6% per year. You are contemplating investing $107.55 in a 1-year CD and simultaneously buying a call option on the stock market index fund with an exercise price of $110 and expiration of 1 year. What is the probability of your dollar return at the end of the year?

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