One of the Major Differences Between a Real Option and a Financial

question 27

Multiple Choice

One of the major differences between a real option and a financial option is that

• A) a real option is not traded in competitive markets.
• B) a real option is traded in competitive markets.
• C) a real option is less risky than a financial option.
• D) a real option has more risk than a financial option.

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Definitions:

Laid Off

The termination of employment due to the employer's decision often because of economic downturns or company restructuring, rather than the employee's performance.

Private Talk

Self-directed speech used by individuals, often in a way to organize thoughts, plan actions, or solve problems.

Conditioned Response

A learned reaction to a previously neutral stimulus that has become associated with an unconditioned stimulus.

Potato Salad

A dish typically made from boiled potatoes and a variety of other ingredients, including mayonnaise, herbs, vegetables, and sometimes meat.