Define Least Material Condition (LMC)

question 45

Essay

Define least material condition (LMC).

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Definitions:

Put Option

A financial contract giving the holder the right, but not the obligation, to sell a specified amount of an underlying asset at a specified price within a specified time.

Real Option

A real option refers to the choice or flexibility a company has to make business decisions, such as expanding, deferring, or abandoning a project based on changes in market conditions.

Exploratory Wells

Wells drilled to find and evaluate new oil or gas fields or to explore unproven areas of known fields.

Feasibility Study

An analysis and evaluation of a proposed project to determine if it (1) is technically feasible, (2) is feasible within the estimated cost, and (3) will be profitable.