# Question: Repeat Problem 17 18 assuming that the volatility of gold is

Repeat Problem 17.18 assuming that the volatility of gold is 20% and that once opened, the mine can be costlessly shut down forever. What is the value of the mine? What is the price at which the mine will be shut down?

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Repeat Problem 17.18 assuming that the volatility of gold is 20% and that once opened, the mine can be costlessly shut down once, and then costlessly reopened once. What is the value of the mine? What are the prices at which ...Repeat Problem 17.6, only assume that after the stock is excavated, the land has an alternative use and can be sold for $30m. Consider Pr(St What is E(St |St > $105) for t = 1? How does this expectation change when you change t , σ, and r? Assume S0 = $50, r = 0.05, σ = 0.50, and δ = 0. The Black-Scholes price for a 2-year at-the-money put is $10.906. Suppose that the stock price is lognormal but can also jump, with the number of jumps Poisson-distributed. ...Post your question