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Which of the following statements about Asian options is FALSE? (A) Asian options exhibit path-dependant payoffs (B) Fixed-strike Asian options are worth less, all else
Which of the following statements about Asian options is FALSE? (A) Asian options exhibit path-dependant payoffs (B) Fixed-strike Asian options are worth less, all else equal, than their vanilla counterpart. (C) Floating-strike Asian options are worth more, all else equal, than their vanilla counterpart. (D) Asian options can have an American-style exercise. When considering the investment in a project as a real option, which is FALSE (A) The investment is akin to a call option. (B) The investment cost is the strike price of the option. (C) There is no cost associated with waiting before undertaking the project. (D) If the real option if worth more than the static NPV, there is value in waiting before undertaking the project. Which of the following statements about Asian options is FALSE? (A) Asian options exhibit path-dependant payoffs (B) Fixed-strike Asian options are worth less, all else equal, than their vanilla counterpart. (C) Floating-strike Asian options are worth more, all else equal, than their vanilla counterpart. (D) Asian options can have an American-style exercise. When considering the investment in a project as a real option, which is FALSE (A) The investment is akin to a call option. (B) The investment cost is the strike price of the option. (C) There is no cost associated with waiting before undertaking the project. (D) If the real option if worth more than the static NPV, there is value in waiting before undertaking the project
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