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I need the answer now. Please just provide an answer to each question. No need to explain. Thank you. A rational finance manager may still

I need the answer now. Please just provide an answer to each question. No need to explain. Thank you.

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A rational finance manager may still select a project with a negative Net Present Value (NPV) if: A The exercise price is high B The value of the option to abandon is high The opportunity cost of capital is high D The value of the option to wait is high E None of the above The incorporation of real options into project valuation may be challenging and therefore, not always possible." A friend suggested that in their view any or, all of the following reasons would vindicate the speaker's claim: I It can be difficult to pin down an 'exact answer in real options calculations. II Valuation of real options can be complex. III Competitors also have real options, which can alter the value of your options. IV Real options don't always have a clear structure Which of the above reasons is FALSE and, therefore, unnecessary to support the claim? AI B 11 III DIV E None of the above "If the payoff from exercising the option immediately is positive, the option is __If the stock price equals the exercise price, the option is Finally, if you would lose money by exercising an option immediately, the option is Fill the blanks above strictly in the appropriate order in which the phrases appearing in options A to D below would fit the blanks. A Out of the money, in the money, at the money B In the money, out of the money, at the money. At the money, in the money, out of the money D In the money, at the money, out of the money Consider a call option with an exercise price of 80 that gives you the right to buy 1 share of BT (British Telecomm) next year. The current price of BT shares is 100. Next year it can either increase to 150 if the economy grows or, it can decrease to 70 if the economy slows down. The risk-free rate is 5% per annum. Using the risk-neutral approach, calculate the current value of the call, if: P1 = (probability the economy slows down) = 0.56 P2 = (probability the economy grows) = 0.44 (A 20.17 (B) 35.17 12.17 D 29.17 E None of the above

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