Cosmic Toys International is considering developing a new toy called the Space Orbit $1.$ There is a similar product already available in the market, so sales are expected to be low. However, with the manufacture of the Space Orbit $1,$ Cosmic Toys would have the ability to develop the Space Orbit $2,$ an out of this world toy unlike any toy ever made. What is the strategic value of the Space Orbit $1$ investment?

Multiple choice question.

The call option on Space Orbit $2$

The put option on Space Orbit $2$

Total sales on Space Orbit $1$

Unexpected higher sales on Space Orbit $1$