You own a plot of land near the airport that is currently worth $9.5 million. Local commercial real estate markets are quite volatile. One year from today the land has a 55% probability of being worth $12 million and a 45% chance of being worth $8.5 million. The airport is considering an expansion and would like you to sell them the right (but not the obligation) to purchase your land for $10 million one year from today. If the one-year government bond yield is 7%, what is a fair price for the right

For example, the upper right cell shows that if expresso advertises and beantown doesn't advertise, expresso will make a profit of $15 million, and beantown will make a profit of $2 million. assume this is a simultaneous game and that expresso and beantown are both profit-maximizing firms. if expresso decides to advertise, it will earn a profit of $ million if beantown advertises and a profit of $ million if beantown does not advertise. if expresso decides not to advertise, it will earn a profit of $ million if beantown advertises and a profit of $ million if beantown does not advertise. if beantown advertises, expresso makes a higher profit if it chooses . if beantown doesn't advertise, expresso makes a higher profit if it chooses . suppose that both firms start off not advertising. if the firms act independently, what strategies will they end up choosing? expresso will choose to advertise and beantown will choose not to advertise. expresso will choose not to advertise and beantown will choose to advertise. both firms will choose to advertise. both firms will choose not to advertise.