Decision Tree for Assets
The end-of-season assets are: 30 + [($.50) (300) - 180] = $0 thousand. (The low-price results in a $30 thousand dollar loss reducing his assets to zero.) If he accepts the contract, use the freighter, and both catches are large, his assets are 30 + [165 - 66 + 75 - 180] = $24 thousand, and so on. Assuming t-v1organ is risk-neutral, what is his best course of action?
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