For each of the situations below, identify and describe the Real Option. Answer these specific questions: What constitutes the option cost, the exercise window, the trigger strategy? How could you estimate the value it gives you? (analytical answer only, no numerical analyses required, be short and precise) i. Real Estate Development: You have been offered the opportunity to invest in the development of an apartment building in a year. Current expected value of the building is $35m. For the right to decide in a year, you have to pay $1m today, which will be adjusted against the required investment only if you choose to invest, otherwise forfeited. What kind of option is it, and how would you decide if the down payment is fair? ii. Research and development Project: A start-up company is offering you the opportunity to invest $5m today, with the opportunity to invest another $5m a year later, and a final $10m 2 years later. If you decide not to invest at any of the subsequent years, you can accept a payment if $2.5m and quit.