Question: In the example considered in Section 36.5 (a) What is the value of the abandonment option if it costs $3 million rather than zero? (b)

In the example considered in Section 36.5

(a) What is the value of the abandonment option if it costs $3 million rather than zero?

(b) What is the value of the expansion option if it costs $5 million rather than $2 million?

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