Suppose That the Oil Price Is Uncertain and Can Be

question 34

Multiple Choice

Suppose that the oil price is uncertain and can be $60/bbl.or $30/bbl.next year with equal probability.Then the value of the option to postpone the project by one year equals:

• A)+34 million
• B)+25 million
• C)+59 million
• D)-13 million

---

Definitions:

Indian Communities

Groups or populations of Indigenous peoples with common cultural, linguistic, or ancestral ties, often living in specific geographic areas.

Spanish Missionary Period

The era from the late 15th to the 18th centuries when Spanish missionaries established missions to convert Native Americans to Christianity.

French and Indian War

A conflict between France and Britain from 1754 to 1763 in North America, part of the greater Seven Years' War, with Native American tribes playing key roles on both sides.

African Religions

Traditional religions practiced in various parts of Africa, often characterized by belief in a supreme being, ancestral worship, and spirituality connected to nature.