Ewing Oil is a privately held firm that specializes in production and distribution of crude oil. Ewing
Oil has cash holdings of $500,000 and an available line of credit of $1,000,000. Inspection of the firm's
historical financial data indicates an average daily net cash flow of $250,000 with a standard deviation
of $800,000. Calculate Ewing Oil's \lambda and the probability that the firm will remain liquid.
Use the information from the previous problem to determine the available line of credit that would
be necessary to achieve the following values for \lambda:
a. 2.00
b. 2.50
c. 3.00