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Determine reasonable price for six-month extension

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Reference no: EM133434060

Question

Anders was meeting with the property owners the next day, and was trying to determine a reasonable price for the six-month extension of the options' maturity date:

- Determine a reasonable price for the six-month extension.

- How does this price compare with the price of a one-year extension? Interpret this result.

Reference no: EM133434060

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