Which of the following represents feature(s) of real options?

I. The higher the volatility of the underlying asset the higher the value of the option

II. An option protects against downside risk but preserves the upside potential

III. The longer the maturity of an option the higher the value of the option

IV. An option gives the holder the right but not the obligation to buy, sell or use an asset Question 19 options:

I, II, III, and IV

IV only

II only

I only