Determine the range of values of the probability that SAEL will exercise its option, making the decision found in part c as optimal, and determine the expected value of perfect information about whether SAEL will exercise its option.

600 wordapa formatted referencesunderstanding risk tolerance levels…

The range of values for the probability that SAEL will exercise its option is 0.50 to 1.00, with 0.50 being the lower bound and 1.00 being the upper bound.

The expected value of perfect information about whether SAEL will exercise its option is $20 million, as this is the maximum amount of profit that could be gained if SAEL exercises its option and acquires a controlling stake in EdCorp.