In Considering the Value of a Real Option to the Target

question 10

Multiple Choice

In considering the value of a real option to the target of a merger or acquisition,the most important factor to be considered is:

• A)the currency in which the real option must be exercised.
• B)whether the real option is a true option or an eventuality.
• C)the standard deviation of such factors as GNP or inflation.
• D)when the real option came into being.

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Definitions:

Astraphobia

The intense fear of thunder and lightning.

Systematic Desensitization

A behavior therapy used to reduce phobic reactions through gradual exposure to feared stimuli or situations combined with relaxation techniques or coping mechanisms.

Traumatic

Pertaining to or resulting from an event that causes severe emotional stress or physical injury.

Modeling

A learning method in which individuals learn by observing and imitating the behaviors of others.