If the Simplico mine is solved with all parameters remaining the same except that (u=1.2) is changed
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If the Simplico mine is solved with all parameters remaining the same except that \(u=1.2\) is changed to \(u=1.3\), the value of the lease remains unchanged to within three decimal places. Indeed, quite wide variations in \(u\) and \(d\) have almost no influence on the lease price. Give an intuitive explanation for this.
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