A project is worth $12M today. Suppose the value of the project is $18M one year from today with high demand or $8M with low demand. You can buy an option that allows you to sell off the project one year from now for $10M. Assume a riskless rate of 5%/year. What is the value of this option?

Hint #1: do not work this with Black-Scholes (this is not a simple call or a put option).

Hint #2: you do not pay $10M one year from today to sell the project.