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A company is undertaking a new investment which costs $3 million. If the new product does not sell well, the company can sell off the

A company is undertaking a new investment which costs $3 million. If the new product does not sell well, the company can sell off the machinery for $500,000. This option to abandon is a:

a. put option with an exercise price of $3 million

b. call option with an exercise price of $3 million

c. put option with an exercise price of $500,000

d. call option with an exercise price of $500,000

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