Author Question: Which of the following is a characteristic of a real option? a. The call option on a stock ... (Read 65 times)

joblessjake · **on:** Jun 30, 2018

Which of the following is a characteristic of a real option?
a. The call option on a stock exercised if some average of the prices of its components passes a critical level.
b. The right to postpone construction on the basis of net present value calculation.
c. The put option on a stock that need to be paid for (at a predetermined price) if they are actually exercised.
d. The right to sell an option at the strike price.

Question 2

Economies of scale are followed by diseconomies of scale.
Indicate whether the statement is true or false