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Which of the following statements about real options is correct? Group of answer choices(a) Anecdotally, we find support for real options analysis in that airlines
Which of the following statements about real options is correct? Group of answer choices(a) Anecdotally, we find support for real options analysis in that airlines do immediately cancel routes as soon as exchange rates move against them. (b) The exercise price of an option to expand operations is the cost of expansion. (c) Flexibility options, which provide businesses with an opportunity to change their operations in response to changes in market conditions, typically involve an exercise price reflecting the cost of establishing that flexibility in the company's operations. (d) Managers who actively assess and exercise real options should view themselves as passive onlookers with no flexible decision making opportunities. (e) All other things being equal, the value of an option to expand operations will decrease as the uncertainty associated with the cash flows from expanded operations increases
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