If the risk-free rate is 3 percent per year what is the, Financial Management

If the risk-free rate is 3 percent per year what is the

Gasworks, Inc., has been approached to sell up to 4.8 million gallons of gasoline in three months at a price of $3.60 per gallon. Gasoline is currently selling on the wholesale market at $3.50 per gallon and has a standard deviation of 64 percent.

If the risk-free rate is 3 percent per year, what is the value of this option? Use the two-state model to value the real option

What is the value of contract?

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Financial Management: If the risk-free rate is 3 percent per year what is the

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Financial Management: If the risk-free rate is 3 percent per year what is the

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