11. (Money-back guarantee) The promoter of the film venture offers a new investment de- signed to attract

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11. (Money-back guarantee) The promoter of the film venture offers a new investment de- signed to attract reluctant investors One unit of this new investment has a payoff of $3,000 if the venture is highly successful, and it refunds the original investment otherwise Assum ing that the other three investment alternatives described in Example 96 are also available, what is the price of this money-back guaranteed investment?

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Investment Science

ISBN: 9780195391060

1st International Edition

Authors: David G. Luenberger

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