Gasworks, Inc., has been approached to sell up to 5 million gallons of gasoline in three months
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Gasworks, Inc., has been approached to sell up to 5 million gallons of gasoline in three months at a price of $2.65 per gallon. Gasoline is currently selling on the wholesale market at $2.34 per gallon and has a standard deviation of 62 percent. If the risk-free rate is 6 percent per year, what is the value of this option?
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Input Area Galllons to sell 5000000 Months to expiration 3 Strike price 265 Current pric...View the full answer
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Related Book For 
Corporate Finance
ISBN: 978-0077861759
11th edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford Jordan
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