Gasworks AG has been approached to sell up to 5 million litres of gasoline in 3 months
Question:
Gasworks AG has been approached to sell up to 5 million litres of gasoline in 3 months at a price of €1.85 per litre. Gasoline is currently selling on the wholesale market at €1.65 per litre and has a standard deviation of 46 per cent. If the riskfree rate is 6 per cent per year, what is the value of this option?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Analyzing the Gasworks AG Option Key Information Option to sell 5 million liters of gasoline at 185l...View the full answer
Answered By
Munir Ahmed Jakhro
I am professional Tutor of of Business Courses, I did my four years Bachelor Degree from one of the Top Business schools of World "Institute of Business Administration" in year 2013. Since then I have been working as Tutor of Accounting, Finance tutor on different online platforms like this website. I am have experience of 6 years teaching business courses to students online and offline my professional job at national savings also helped me in accounting understanding .
8+ Reviews
10+ Question Solved
Related Book For 
Corporate Finance
ISBN: 9780077173630
3rd Edition
Authors: David Hillier, Stephen A. Ross, Randolph W. Westerfield, Bradford D. Jordan, Jeffrey F. Jaffe
Question Posted:
