Consider the provision of spare parts and the reliability of plant or equipment. Purchasing the spare parts might be considered the premium paid for the possibility of repairing the equipment in the future should it break down. Equipment survivability might follow an exponential curve, and since the time, T, of exercising the use of the spares is unknown, the situation might be thought to be equivalent to an American option form. With no spares, the cost at T is the downtime cost. With spares, the gain might be the negative of the downtime cost. The exercise cost is zero. Is what has been described here a potential use of options analysis, or is it not an options situation because if you have the spares and breakdown occurs, you will always use the spares?