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only need part ( c ) If the option will cost the investor an additional $ 1 0 , 0 0 0 , should the
only need part c
If the option will cost the investor an additional $ should the investor purchase the option? Why or why not? What is the maximum in dollars that the investor should be willing to pay for the option?
The investor Select purchase this option, as the payoff of the investing in it is Select$ dollars. In general, the cost of the option can be at most, $
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