An example of a real option is:
A) The option to make follow-on investments.
B) The option to abandon a project.
C) The option to wait before investing.
D) all of the above.

Question

Quizplus · Accepted Answer

Real options include the ability to make follow-on investments (Option to Expand), abandon a project (Option to Abandon), and wait before investing (Option to Delay). Therefore, all of the above options are real options.

An Example of a Real Option Is