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Gasworks, Incorporated, has been approached to sell up to 4 . 2 million gallons of gasoline in three months at a price of $ 3
Gasworks, Incorporated, has been approached to sell up to million gallons of gasoline in three months at a price of $ per gallon. Gasoline is currently selling on the wholesale market at $ per gallon and has a standard deviation of percent. If the riskfree rate is percent per year, what is the value of this option?
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