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Hello sir,
Present value of underlying asset (Pa) = $30,613,600 (approximately)
(This is the sum of the present values of the cash flows foregone in years 3, 4 and 5).Please i would like you to explain to me how they arrived at this (Pa) above.
Thanks for the great effort…
There is a lecture uploaded where I work through the whole of this question.
You can find it linked from here:
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