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:

Business Ownership

Refers to the legal possession and control over a business entity by an individual or group.

Corporations

Legal entities that are separate from their owners, with the ability to own property, enter into contracts, and be sued.

Joint Venture

A business arrangement where two or more parties agree to combine their resources for accomplishing a specific task, sharing profits, losses, and control.

Specified Purpose

A defined goal or objective that a project or venture aims to achieve.