Which of the Following Is an Example of Real Options

question 23

Multiple Choice

Which of the following is an example of real options?

• A) Valuation of vacant land
• B) Valuation of projects with phases of development
• C) Valuation of a building that can be renovated
• D) All of the above

---

Definitions:

Annapolis Conference

A meeting in Annapolis, Maryland, in 1786 intended to address economic disputes between the States but setting the stage for the Philadelphia Convention for drafting the US Constitution.

National Trade Policy

Governmental regulations and agreements that determine how a country conducts trade with other nations, including tariffs, trade agreements, and import/export regulations.

Shays's Rebellion

A 1786-1787 armed uprising in western Massachusetts led by Daniel Shays, stemming from discontent with high taxes and economic injustices, which highlighted the weaknesses of the Articles of Confederation.

Overthrow Government

The act of removing and replacing a government or its leaders, typically through force or illegal means.