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Please provide the CORRECT answer to this question. Please read the question CAREFULLY and DOUBLE CHECK your answer BEFORE posting it. Thank you! Yardie Global

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Please provide the CORRECT answer to this question. Please read the question CAREFULLY and DOUBLE CHECK your answer BEFORE posting it. Thank you!

Yardie Global is considering expanding a cruise line division next year (t=1) or waiting a year due to public health concerns. The cruise line has a discount rate of 11 percent and has an NPV today (t=0) of $40M. If they wait one year for market research, there is a 30 percent chance that the NPV next year (t=1) could be $150M and 70 percent chance that they will sell the division for $2M. The company can consider the option to sell the division as similar to taking a long position on a put option with a strike price equal to $2M. taking a long position on a call option with a strike price equal to $40M. taking a long position on a call option with a strike price equal to $2M

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