The Major Principles to Remember When Considering Real Options Include

question 58

Multiple Choice

The major principles to remember when considering real options include all of the following EXCEPT:

• A)out-of-the-money real options have value.
• B)in-the-money real options need to be exercised immediately.
• C)waiting is valuable.
• D)create value by exploiting real options.

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Definitions:

Payor Bank

The bank that is responsible for paying the draft or check written by a depositor.

Uncertified Check

A check that has not been verified or guaranteed by the bank upon which it is drawn.

Provisionally Credits

Temporarily recorded credits in an account that are subject to confirmation.

Payment Final

The conclusive settlement of a debt or obligation, which prevents any future claims or demands for payment.