Which of the following best describes the application of real options to strategic decision making?

Select one:

a. The right to invest can be represented by a put option, which gives the holder the right to buy the strategy underlying the real option.

b. The right to invest can be represented by a call option, which gives the holder the right to buy the strategy underlying the real option.

c. The right to divest can be represented by a call option, which gives the holder the right to buy the strategy underlying the real option.

d. The right to divest can be represented by a put option, which gives the holder the right to buy the strategy underlying the real option.

e. An option can be used to provide a natural hedge to mitigate risk.