Repeat Problem 17.18 assuming that the volatility of gold is 20% and that once opened, the mine

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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 forever. What is the value of the mine? What is the price at which the mine will be shut down?
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Derivatives Markets

ISBN: 9789332536746

3rd Edition

Authors: Robert McDonald

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