20. Repeat Problem 18 assuming that the volatility of gold is 20% and that once opened, the...

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20. Repeat Problem 18 assuming that the volatility of gold is 20% and that once opened, the mine can be costlessly shut down forever. What is the value of the mine? What is the price at which the mine will be shut down?

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Derivatives Markets Pearson New International Edition

ISBN: 978-1292021256

3rd Edition

Authors: Robert L. Mcdonald

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Question Posted: Jul 22, 2024 07:02 AM

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19. Repeat Problems 17 and 18 assuming that the annual volatility of gold is 20%.
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20. Repeat Problem 18 assuming that the volatility of gold is 20% and that once opened, the...

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Derivatives Markets Pearson New International Edition

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