-Consider the Pricing Game Depicted in Figure 4

Multiple Choice

-Consider the pricing game depicted in Figure 4.1 in which the payoffs are in millions of dollars. If the discount rate is 20 percent and this game is infinitely repeated, what is the present value of the stream of payoffs from defection?

A) $68 million.
B) $92 million.
C) $120 million.
D) $132 million.
E) None of the above.