The value of an option to invest in a real asset reflects ______.
A) managerial flexibility in the timing of investment
B) the value of the asset as a "now or never" proposition
C) the value of the option to delay investment
D) Three of the above
E) Two of the above

Question

Quizplus · Accepted Answer

The value of an option to invest in a real asset reflects managerial flexibility in the timing of investment, the value of the asset as a "now or never" proposition, and the value of the option to delay investment. Therefore, three of the above options are correct.

The Value of an Option to Invest in a Real