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Mathematics, 10.10.2019 05:20 tiannaetzel
Global gas international offers to contract the halidurton heavy construction corporation to build an oil pipeline from canada to new orleans that will provide halidurton $600 million in income. the probability that the oil pipeline will leak, causing environmental damage is theta. if so, the legal liability will be $1 comma 200 million. if halidurton is risk neutral and liable for the damages from a leak, what is the theta such that it is indifferent between accepting and rejecting the contract?
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