What kind of options are tradeable?

Real options

Financial options

True or False: The presence of managerial, or real, options decreases the value of an investment project.

True

False

Which of the following statements is most accurate about real options?

Real options always give managers the flexibility to decide to either invest in a project or wait to make a more calculated decision at a later date.

Real options do not give managers the flexibility to decide to either invest in a project or wait to make a more calculated decision at a later date.

Real options can give managers the flexibility to decide to either invest in a project or wait to make a more calculated decision at a later date.

Real options restrict managers to waiting before deciding on making an investment in a project.