The drought right
A right to buy one barrel of water at 100 in a year's time, when water costs 100 today. What is it worth, and what makes it worth more?
A farmer buys a right, not water: one barrel at 100 next year, or walk away. The panels show the fair price today, the chance the right is used, and the matching right to sell. Notice the payoff line never moves while the price does.
Board: The Drought Right →On a narrow screen the three panels stack below the dials, and the table scrolls sideways.
try this Drag How wild the weather is from 10% to 40% and watch Fair price today double.
Included with a plan
This lab is included with a plan. The first three lessons of every track are free, with their boards and videos. A plan unlocks every lesson, board, video, lab and paper for one price.