A Real Option Is

question 12

Multiple Choice

A real option is:

• A) a commodity option.
• B) an option that has 90% probability or higher to be in the money at the time of maturity.
• C) an ability to close the production line.
• D) None of these.

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Definitions:

Representative Sample

A subgroup of a population that accurately reflects the members of the entire population, enabling statistically valid conclusions.

Random Sample

A subset of a population selected for a study or survey in which each member has an equal chance of being chosen, ensuring the results are statistically representative of the whole.

Convenience Sample

A non-probability sampling method where the sample is taken from a group of people easy to contact or to reach.

Longitudinal Sample

A research sample that is observed over a long period of time to track changes and developments in the subjects.