Grange has the option to sell iron ore or leave it in the ground. So GRR can be valued with an option price model. Iron ore has a volatility of about 30%. Over the next 10 years Grange will produce 25 million tonnes at a cost of perhaps $160/tonne. So the strike price of the iron ore is $4 billion. The market price of the ore is also about $4 billion at current prices. Using an online calculator for american options with 10% interest rate and 10% dividend yield, the option to sell the iron ore is worth about $0.96 billion.
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Last
31.5¢ |
Change
-0.005(1.56%) |
Mkt cap ! $367.4M |
Open | High | Low | Value | Volume |
32.5¢ | 32.5¢ | 31.5¢ | $140.1K | 441.5K |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
8 | 93573 | 31.5¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
32.0¢ | 170601 | 14 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
7 | 85161 | 0.315 |
33 | 917274 | 0.310 |
15 | 222229 | 0.305 |
29 | 701271 | 0.300 |
10 | 243969 | 0.295 |
Price($) | Vol. | No. |
---|---|---|
0.320 | 170601 | 14 |
0.325 | 290494 | 17 |
0.330 | 361776 | 9 |
0.335 | 117934 | 7 |
0.340 | 133917 | 8 |
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