Scenario 15.7: Consider the Following Information

Scenario 15.7:
Consider the following information:
You move to northern California and buy a winery that already holds a stock of some wine in barrels. You are deciding whether to sell the wine now, or keep it until next year. The current price of wine is $20 per bottle, and it costs $2 per bottle to get the wine from barrels to bottles.
-Based on the information in Scenario 15.7, if you expect the price to be $21 next year, you should:

A) keep the wine in barrels until next year no matter what the interest rate.
B) keep the wine if interest rates are above 5%.
C) keep the wine if interest rates are below 5%.
D) sell the wine now.
E) do nothing until you know what the interest rate is going to be for the following year.