What can the seller expect to raise and at what price

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Reference no: EM131241562

A stake in an oil field is for sale. It can be worth either $500 or $1,000 with equal probabilities. It costs $250 to develop.

The seller knows the true value; you do not. The seller has no personal sources of funds. In an otherwise perfect market with no time value of money, what can the seller expect to raise and at what price?

Reference no: EM131241562

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