Suppose you have a project that will produce a single widget. Widgets today cost $1 and the

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Suppose you have a project that will produce a single widget. Widgets today cost $1 and the project costs $0.90. The risk-free rate is 5%. Under what circumstances would you invest immediately in the project? What conditions would lead you to delay the project?
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Derivatives Markets

ISBN: 9789332536746

3rd Edition

Authors: Robert McDonald

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