A ____ is a course of action that can be made available, usually at a cost, which improves financial results under certain conditions.
A)probability distribution
B)decision tree
C)risk-adjusted option
D)real option

Question

Quizplus · Accepted Answer

A real option is a course of action that can be made available, usually at a cost, which improves financial results under certain conditions. It is a type of financial instrument that represents a right, but not an obligation, to undertake certain business initiatives, such as expanding a project or waiting to invest in a new technology. Real options are often used in project finance and strategic decision-making to capture the value of managerial flexibility and uncertainty.

A ____ Is a Course of Action That Can Be