Suppose Michael is running a small business. He purchases goods from Gumtree\ and resells them at local swap meets. Swap meets charge Tom 600 in advance to\ set up his small booth. Ignoring the cost of the booth, if he goes to every meet, his\ average profit on the goods that he sells is 1,250 pet meet. Moreover, Tom is\ aware that attendance at swap meets might be related to the weather condition.\ Specifically, his profits will be 1,700 in good weather, and will suffer the loss of\ 200 in bad weather. It is known that there is a 35% chance of bad weather. Explain\ and calculate the value of the real option.