Real options are an important tool for thinking about strategic decisions under uncertainty,however,quantitative techniques designed to value financial options (e.g.the Black-Scholes option pricing model)cannot be applied to real options.

Question

Quizplus · Accepted Answer

Quantitative techniques designed to value financial options can be adapted and applied to real options, although there are certain complexities and challenges involved in doing so.

Real Options Are an Important Tool for Thinking About Strategic