Verify in Figure 17.2 that if volatility were 30% instead of 50%, immediate exercise would be optimal.

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Authors: Robert McDonald

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Verify in Figure 17.2 that if volatility were 30% instead of 50%, immediate exercise would be optimal.

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u exp 03 13499 and In one year the project values if invested will be 18 u 012 202...View the full answer

Derivatives Markets

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