Question
What is the relationship between the expected value of a project with the option to abandon and the expected value of the same project without
What is the relationship between the expected value of a project with the option to abandon and the expected value of the same project without the option to abandon?
A. the NPV with the option is more than or equal to the NPV without the option
B. the NPV with the option is less than or equal to the NPV without the option
C. the NPV with the option is the same as the NPV without the option
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The Option Trader Handbook
Authors: George Jabbour
2nd Edition
0470481617, 978-0470481615
