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

a) Computetheprobabilitythattheindexvaluein6monthsisgreaterthan3,300.


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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