Which of the Following Statements Is FALSE

question 22

Multiple Choice

Which of the following statements is FALSE?

• A)It is tempting to use the Black-Scholes formula to value future growth options,but often there are good reasons why this formula might not price these options correctly.
• B)When a firm has a real option to invest in the future it is known as a growth option.
• C)Because growth options have value,they contribute to the value of any firm that has future possible investment opportunities.
• D)Future growth opportunities can be thought of as a collection of real put options on potential projects.

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A government-granted exclusive right to an inventor, allowing them the sole right to make, use, and sell an invention for a certain period of time.

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