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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 4.2 million gallons of gasoline in three months at a price of $3.30 per gallon. Gasoline is currently selling on the wholesale market at $3.10 per gallon and has a standard deviation of 58 percent. If the risk-free rate is 4 percent per year, what is the value of this option?

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