Multiple Choice
The current price of silver is $ 31.00 per ounce.The effective lease rate and risk free rate are 1.0% and 3.5%,respectively.If the cost to mine one ounce of silver is a constant $25.00,what is the value of an option to wait and mine the silver later?
A) $13.50
B) $14.50
C) $15.50
D) $16.50
Correct Answer:
Verified
Correct Answer:
Verified
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