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Consider a CEO with the following compensation contract: Contract value is O if stock price at contract maturity is less than one (S1). Which project

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Consider a CEO with the following compensation contract: Contract value is O if stock price at contract maturity is less than one (S1). Which project will be chosen by the CEO between the following projects? Project A: Stock price at maturity will be $1.5 (100% probability) Project B: Stock price will be either $1 (50% probability) or $2 (50% probability)

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