Which One of the Following Will NOT Increase the Value

question 28

Multiple Choice

Which one of the following will NOT increase the value of a real option?

• A) Lengthening the time during which a real option must be exercised.
• B) An increase in the volatility of the underlying source of risk.
• C) An increase in the risk-free rate.
• D) An increase in the cost of obtaining the real option.
• E) A decrease in the probability that a competitor will enter the market of the project in question.

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Definitions:

Defrag

The Windows command line command that starts the defragmentation process of reordering and placing files in contiguous sectors for better performance.

Chown

A Linux command that changes ownership.

Chmod

A Linux command that gives the file owner read, write, and execute permissions.

Grep

A command-line utility in Unix and Linux environments for searching through plain text data sets for lines matching a regular expression.