14. Consider the oil project with a single barrel, in which S = ($15), r = 5%,...
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14. Consider the oil project with a single barrel, in which S = \($15\), r = 5%, δ = 4%, and X = \($13.60\). Suppose that, in addition, the land can be sold for the residual value of R = \($1\) after the barrel of oil is extracted. What is the value of the land?
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Related Book For 
Derivatives Markets Pearson New International Edition
ISBN: 978-1292021256
3rd Edition
Authors: Robert L. Mcdonald
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