"An oil producer is trying to decide if and when it should
abandon an oil field. For simplicity, assume the producer will
abandon immediately (year 0), at the end of year 1, at the end of
year 2, or stay at least through the next two years. The major
uncertainty is the price of oil, which can go up or down in any
year. In each year, there is a 0.33 probability the oil price will
go up and a...