Which of the Following Is Not True About Real Options

question 91

Multiple Choice

Which of the following is not true about real options?

• A) All investment decisions contain identifiable and measurable real options.
• B) Under certain circumstances, management may be able to delay their initial investment in a project or M&A.
• C) Real options may be valued as the expected value of various alternative cash flow projections.
• D) Real options can be valued using the Black-Sholes method.
• E) None of the above

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