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The S&P 500 index current level is 3,000. The dividend yield on the index is equal...

The S&P 500 index current level is 3,000. The dividend yield on the index is equal to the riskfree

rate of interest. Given a volatility of the index of 25%:

a) Compute the probability that the index value in 6 months is greater than 3,300.

b) Compute the probability that the index value in 6 months is less than 2700.

c) Compute the probability that the index value in 6 months is between 2700 and 3300.

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jeff jeffy answered 1 year ago
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