Jim Owns a Farm That He Wants to Sell

question 7

Multiple Choice

Jim owns a farm that he wants to sell. He learns that a highway will be built near the farm in the future, giving access to the farmland from a nearby city and thus making the land attractive to housing developers. Expecting the net present value (NPV) of the sale to be greater after the highway is built, he decides not to sell at this time. What real option is Jim taking?

• A) option to delay
• B) option to expand
• C) option to abandon
• D) option to switch

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Definitions:

Sexual Activity

Behaviors involving the sexual organs that people engage in for pleasure, reproduction, and/or to maintain social bonds.

Antiretroviral Drugs

Medications used to treat HIV, capable of suppressing the virus and preventing the progression of the disease.

HIV

Human Immunodeficiency Virus, a virus that attacks the immune system, potentially leading to AIDS (Acquired Immunodeficiency Syndrome) if not treated.

Transmission

The process by which genetic or other information is passed from one entity to another.