5. [10' pts.] A copper mine has 100 pounds of raw material that we can extract one year from now. The extraction costs are $0.30 per petund which we would incur one year from now. The oneyear forward price of copper is $0.35 per pound. Our analysts estimate that one year horn now, the copper price will he either $f pound in a good economy or $0.23! pound in a bad economy. The riskfree rate is 4%. If we don't extract the copper one year from today, Christian Slater will set off a nuclear bomb in the mine shaft and we will lose access to the mine forever. a. Suppose we must decide today if we will extract the copper in one year's time. Find the value of the mine. h. [More challenging] Suppose we can wait until we know if the economy is good or had [and thus, we will know the price of copper) before deciding whether or not to extract the copper. Find the 1:ralue of the mine