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BSOP (Black scholes model)

Ssula198813y ago
In bpp p4 text when using BSOP (Black scholes model) in default probability and loss has stated r= ln (1+ 0.05) = 0.0488 (risk free rate given =0.05) can some one explain why.? in options chapter they have just used risk free rate straight forward. what is the correct method
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