Option: Option is the right available to invest or disinvest in a particular business or project, but not an obligation to make such investment decision at a fixed price on some future date. To Explain: Difference between an American option and a European option.

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Chapter 21, Problem 2CT

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Option: Option is the right available to invest or disinvest in a particular business or project, but not an obligation to make such investment decision at a fixed price on some future date.

To Explain: Difference between an American option and a European option.

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