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Question 10 1 pts Fancy Hats Inc. is about to issue 5 million shares of new equity in an IPO. The offering price will be

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Question 10 1 pts Fancy Hats Inc. is about to issue 5 million shares of new equity in an IPO. The offering price will be set to $20, and the underwriter has an overallotment option for 18% more shares. What is this overallotment option worth if there is a 50% chance that the opening price on the first day of trading will be $40, and a 50% chance that the opening price on the first day will be $13

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