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A plant's present value is $10 million which can increase by either 20% or decrease by 25% per year. The firm has an option that

A plant's present value is $10 million which can increase by either 20\% or decrease by 25\% per year. The firm has an option that allows them to sell the plant's assets for $7million on or before 2 years from now. The risk free interest rate is 10\%.

a) What is the value of the option delta going from period 0 to period 1? Write your answer three decimal spaces. (ex. 1.234 or -1.234)

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