12. A variation on Problem 11: Suppose the land is occupied by a warehouse generating rents of...
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12. A variation on Problem 11: Suppose the land is occupied by a warehouse generating rents of $150,000 after real estate taxes and all other out-of-pocket costs. The present value of the land plus warehouse is again $1.7 million. Other facts are as in Problem 11. You have a European call option. What is it worth?
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