Which Circumstance Will NOT Increase the Value of a Real

question 5

Multiple Choice

Which circumstance will NOT increase the value of a real option?

• A)lengthening the time in which a real option must be exercised
• B)an increase in the volatility of the underlying source of risk
• C)an increase in the risk-free rate
• D)an increase in the cost of obtaining the real option

---

Definitions:

Issued Shares

A corporation’s shares that a corporation has sold to its shareholders. Includes shares repurchased by the corporation and retained as treasury shares, but not shares canceled or returned to unissued status.

Model Nonprofit Corporation Act

A guideline for the governance of nonprofit organizations, providing a standard legal framework for their formation and operation.

Nonprofit Corporation

An entity designed to operate without the objective of making profits for its owners or members, often focused on serving the community or public interest.

Minimum Number

The smallest quantity or amount permitted or required under certain conditions or for a specific process.