please answer parts A and B

Part A

Part B

Which of the following is true regarding the value of real options? O A real option's value can be either positive or negative depending on the alternatives that the real option provides to management A real option's value is always positive because providing more potential opportunities for how to conduct a project always creates value O A real option's value can be either positive or negative because it can expire in the money, with a value of (Price-Spot) or out of the money with a value of (Spot-Price) O A real option's value is always non-negative because, at worst, we could simply ignore the alternative(s) that a real option provides Real options are most valuable in which of the following set-ups? The potential project is very risky and you have only a short time available where the real option might be exercised The potential project is somewhat conservative (not very risky) and you have only a short time available where the real option might be exercised The potential project is somewhat conservative (not very risky) and you have a long time available where the real option might be exercised The potential project is very risky and you have a long time available where the real option might be exercised