Question: You have a project valued at 2 0 0 that could increase or decrease by 2 5 % per period for two periodsThe project has
You have a project valued at that could increase or decrease by per period for two periodsThe project has three embedded options:
option to abandon at ;
a contraction option with a strike of with an of original value; and
an expansion option with a strike of with of original value.The risk free rate is and the WAcc is What is the value of all the options combined?
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