Which of the Following Is NOT a Real Option

question 1

Multiple Choice

Which of the following is NOT a real option?

• A)the option to expand production if the product is successful
• B)the option to buy shares of stock if its price goes up
• C)the option to expand into a new geographic region
• D)the option to switch the type of fuel used in an industrial furnace

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Definitions:

Stock Price

Stock price is the current price at which a share of a company is trading on the stock market.

Earnings Potential

The maximum amount of money an individual, asset, or company could potentially earn.

Slope

In mathematics, it refers to the measure of the steepness, incline, or grade of a straight line, quantitatively describing the change in the vertical direction for a unit change in the horizontal direction.

Stock Return

The gain or loss on a stock investment, usually expressed as a percentage of the investment's initial cost.