Real Options Are

question 63

Multiple Choice

Real options are:

• A) options on real assets such as an option to abandon.
• B) call and put options traded on organized exchanges.
• C) call options such as warrants and convertible bonds.
• D) put options such as those held by shareholders of a firm with financial leverage.

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Definitions:

Moral Behavior

Actions that align with societal, cultural, or personal norms of right and wrong, often involving considerations of fairness, justice, and ethics.

Sarbanes-Oxley Act

A U.S. law enacted in 2002 aimed at protecting investors from fraudulent accounting activities by corporations, thereupon enhancing corporate governance and financial transparency.

Investor Confidence

The level of trust that investors have in the stability and potential profitability of financial markets or specific investments.