Which one of the following will NOT increase the value of a real option?

A. Lengthening the time during 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.
E. A decrease in the probability that a competitor will enter the market of the project in question.


Answer: D

Business

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What will be an ideal response?

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Monthly or weekly service schedule is the ______ set of decisions in the hierarchy of operations decision for ______ organizations.

a. last, manufacturing b. first, manufacturing c. last, service d. first, service

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The standard error of  -  is the

A. pooled estimatorof  - .
B. variance of the sampling distribution of  - .
C. standard deviation of the sampling distribution of  - .
D. margin of error of -.?

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Because an outsourced provider is specialized, a main disadvantage is their inability to learn unique innovations from one company and transfer them to another company.

Answer the following statement true (T) or false (F)

Business