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You have the option to open a store today at a cost of 100, which would generate profits (in PV terms of) 120. You can

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You have the option to open a store today at a cost of 100, which would generate profits (in PV terms of) 120. You can also delay opening the store until next year. The cost would then rise to 110. The store's profits next year have a volatility of 25% and the risk-free rate is 5% a. Using the Black and Scholes formula, what is the value of delaying the store opening? b. Should you invest today or delay

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