Question
Suppose you just won a lottery. You could either choose to get a quarterly payment of $5000 for 10 years, with the first payment 1
Suppose you just won a lottery. You could either choose to get a quarterly payment of $5000 for 10 years, with the first payment 1 year from today; or you can choose to get a lump sum of $130,000 today. Suppose the applicable interest rate is an APR of 8%, compounded quarterly. Which option should you choose? Why?
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Fundamentals Of Futures And Options Markets
Authors: John Hull
9th Global Edition
1292422114, 9781292422114
