Real options are:
A) options on real assets such as an option to abandon.
B) call and put options traded on organized exchanges.
C) call options such as warrants and convertible bonds.
D) put options such as those held by shareholders of a firm with financial leverage.

Question

Quizplus · Accepted Answer

Real options refer to options on real assets, such as the option to abandon a project, delay investment, or expand capacity. These options cannot be traded on organized exchanges like financial options.

Real Options Are