Which of the Following Is a Characteristic of a Real

question 34

Multiple Choice

Which of the following is a characteristic of a real option?

• A)The call option on a stock exercised if some average of the prices of its components passes a critical level.
• B)The right to postpone construction on the basis of net present value calculation.
• C)The put option on a stock that need to be paid for (at a predetermined price) if they are actually exercised.
• D)The right to sell an option at the strike price.

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Definitions:

Interactional Justice

The interpersonal treatment employees receive during the implementation of the downsizing decision.

Downsizing Decision

The process undertaken by a company to reduce its workforce to improve efficiency or reduce costs.

Interpersonal Treatment

The behavior and manner in which individuals interact with one another within an organization.

Interactional Justice

The fairness perceived in the communication processes used during the implementation of organizational procedures.