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6. The value of a project is $100 and the cost at t=0 is $104. The project value follows a binomial model. It could go up to
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oix to giog benuo - tu=0 C1807 wlog Ke 178 # 104 K HOOP od 218 stoo con gra ci fd = 18 dyosu CT 60 he moueonment Gives us guc

| $ 0 = 180 = 13 TOM de 60 = 0.58. LOH pot 810-0841) = 1.0833 P= eord urd (of Risk free oute) | 1.0833 -0.58 1.73 -0.58 = 10:

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