Which of the Following Are Examples of Real Options

question 31

Multiple Choice

Which of the following are examples of real options?
I.the option to expand if an investment project succeeds;
II.the option to wait (and learn) before investing;
III.the option to shrink or abandon a project;
IV.the option to vary the mix of output or the firm's production methods

• A)I only
• B)I and II only
• C)I, II, and III only
• D)I, II, III, and IV

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Definitions:

Conflict

An instance of opposition or disagreement between ideas, interests, or people.

Impersonal Situation

A scenario or context that lacks personal connection or emotional involvement.

Credibility

The quality of being trusted and believed in, often reflecting a person's reliability or the convincing power of an argument.

Authority Figure

An individual who holds power or influence, often in a leadership role, within a specific context.