The following are practical challenges in applying real-options analysis:
I. real options can be complex
II. the real options problems may not be well structured
III. competition may reduce or change the value of real options
A) I only
B) I and II only
C) III only
D) I, II and III

Question

Quizplus · Accepted Answer

Real options analysis can be complex and the problems may not be well structured, which can make it difficult to apply the analysis effectively. Additionally, competition can reduce or change the value of real options, which is another practical challenge that must be considered. Therefore, all three options are valid practical challenges in applying real-options analysis.

The Following Are Practical Challenges in Applying Real-Options Analysis