Real Options Include ______

question 35

Multiple Choice

Real options include ______.

• A) the expansion/contraction options
• B) the investment/abandonment options
• C) the suspension/reactivation options
• D) Three of the above
• E) Two of the above

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Definitions:

Materialize

To become real or actual; in finance, it refers to the realization of expected results, risks, or events in tangible form.

Long-term Notes Payable

Liabilities or debts with a repayment period extending beyond one year, evidenced by a formal promissory note.

Floating Interest Rates

Interest rates that fluctuate over time based on the market or an index.