We mentioned that combustion-turbine (CT) generators can be set up to burn either oil or natural gas.

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We mentioned that combustion-turbine (CT) generators can be set up to burn either oil or natural gas. How will the value of this option be affected by the correlation between oil and natural gas prices? Explain briefly.

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Principles of Corporate Finance

ISBN: 978-0077404895

10th Edition

Authors: Richard A. Brealey, Stewart C. Myers, Franklin Allen

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Question Posted: Dec 31, 2012 10:25 AM

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We mentioned that combustion-turbine (CT) generators can be set up to burn either oil or natural gas.

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If oil and natural gas prices are highly positively correlated then the value of the option is ...View the full answer

Principles of Corporate Finance

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