The Option to Abandon a Project Is a Real Option

question 13

True/False

The option to abandon a project is a real option, but a call option on a stock is not a real option.

---

Definitions:

Standard Normal

A type of normal distribution with a mean of 0 and a standard deviation of 1.

Random Variable

A numerical value variable resulting from random phenomena.

Random Variable

A variable representing numerical results from a chance event.

Standard Normal

A normal distribution with a mean of 0 and a standard deviation of 1, used as a basis for comparing different distributions.