A mine costing $1000 will produce 1 ounce of gold per year forever at a marginal extraction
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A mine costing $1000 will produce 1 ounce of gold per year forever at a marginal extraction cost of $250, with production commencing 1 year after the mine opens. Gold volatility is zero. What is the estimation of the mine?
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As in Example 171 we receive an underlying cash flow worth 300003 10000 by paying a strike of ...View the full answer
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