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A silver company, AOZI, purchased the right to extract silver from a mountain in South Africa. This right lasts only for two years, and it

A silver company, AOZI, purchased the right to extract silver from a mountain in South Africa. This right lasts only for two years, and it takes a year to extract silver, which has a total amount of 3 million oz. Extraction costs $52.00 millions up front. The silver price is $19.00 per oz now. The price goes up by 30.00% or drops by 22.00% every year. The silver price risk is non-diversifiable. The risk-free rate is 2.31%.

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