Real Options For this section, imagine you are evaluating a project where revenues next year (year 1) can be CAD 100 or CAD 50 with equal probability. Costs will be CAD 75 no matter what. There are no other cash flows before or after year 1. Risk-neutral probabilities for valuing this project are 60% and 40%(these are the qs we talked about in class, with 60% being the risk-neutral probability of revenues being CAD 100), and the risk-free rate is 5%. Question 6(1 point) Suppose the project cannot close down in year 1, and therefore will have to operate at a loss if revenues are low. What is the (no-arbitrage) value of this project? Question 6 options: About -5 About 0 About 5 About 15 About 20 Question 7(1 point) Suppose now the project can close down in year 1, such that if revenues are going to be low, the project can be shut down without incurring a loss. What is the (no-arbitrage) value of this project? Question 7 options: About -5 About 0 About 5 About 15 About 20