Which of the Following Are Examples of Real Options

question 35

Multiple Choice

Which of the following are examples of real options?

• A)The option to expand if an investment project succeeds only
• B)The option to expand if an investment project succeeds and the option to wait (and learn) before investing
• C)The option to expand if an investment project succeeds, the option to wait (and learn) before investing, and the option to shrink or abandon a project
• D)The option to expand if an investment project succeeds, the option to wait (and learn) before investing, the option to shrink or abandon a project, and the option to vary the mix of output or the firm's production methods

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Definitions:

AIDS

Acquired Immune Deficiency Syndrome, a life-threatening condition caused by the human immunodeficiency virus (HIV), which severely damages the immune system.

Contagious Disease

An infectious disease that can be transmitted from one individual to another through direct contact, airborne particles, or other means.

ISAS

A shorthand presentation of the symbolic interactionist’s statement: Behavior of the individual is in response to symbols, relative to the audience, and relative to the situation.

Biological Aspects

The components or characteristics of an organism or any of its parts influenced by genetics and biology.