"Suppose the government guarantees the price of carbon. At this price, the payoff after 1 year is $120,190 for sure. What is the opportunity cost of capital for this investment?"

a. U.S. Treasuries with 1 year to maturity

Explanation:

The Government guaranteed the price of the carbon and the payoff is to be one year later.

The opportunity cost will therefore be a similar Government security to the payoff term of the carbon sale which is 1 year.

The Government security with a similar payoff term is the US Treasury bill with 1 year left till maturity and this will be the opportunity cost because instead of the Government issuing and paying out that security they will instead pay for the carbon.

answer; (a) calling people who have not shown interest in the product and asking them to buy it;