Global Gas International offers to contract the Halidurton Heavy Construction Corporation to build an oil pipeline from Canada t
o 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?
Six multiplied by three equals eighteen. fifteen plus three equals eighteen. and eighteen equals eighteen. therefore the equation is equal, because everything in the equation equals eighteen. Good Luck ;)