Principles of Managerial Finance (14th Edition) (Pearson Series in Finance)
Principles of Managerial Finance (14th Edition) (Pearson Series in Finance)
14th Edition
ISBN: 9780133507690
Author: Lawrence J. Gitman, Chad J. Zutter
Publisher: PEARSON
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Chapter 12.5, Problem 12.10RQ

What are real options? What are some major types of real options?

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What is a financial option? What is the singlemost important characteristic of an option?
What’s the difference between a financial optionand a real option? What are some specific typesof real options? Do real options just occur, or canthey be “created”?
In a qualitative analysis, what factors affect the value of a real option?
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