Some of the Most Common Applications of Real Options Are

question 82

Multiple Choice

Some of the most common applications of real options are with property and insurance.A real estate option grants the holder the right to buy or sell a piece of property at an established price sometime in the future.If the price of the property goes ________,the owner of the option is likely to buy it.If the market value of the property ________ the strike price,the option holder is unlikely to execute the purchase.

• A) down; goes above
• B) down; drops below
• C) up; drops below
• D) up; goes above

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Definitions:

Disk Drive

A device within a computer that reads and writes data to and from a physical disk, such as a hard drive or floppy disk.

Throws A New Exception

Indicating in a method signature that it may throw an exception, requiring calling code to handle or further declare the exception.

Catch Or Declare Rule

A principle in Java requiring a method to either catch an exception with a try-catch block or declare it in the method's throws clause.

Compiler

A tool that translates code written in a high-level programming language into machine code or another form that a computer can execute directly.