Multiple Choice
Continuing with the power plant from the previous question,suppose instead the price of coal next month could be $54 or $66 (with equal probability) .Now how much would it be willing to pay for an option to buy a ton of coal oil next month at today's price?
A) 5
B) 4
C) 3
D) 0
Correct Answer:
Verified
Correct Answer:
Verified
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