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Which of the following statements is correct? a) In a real option analysis, each project is treated as a now-or-never decision. b) Real options can
Which of the following statements is correct?
a) In a real option analysis, each project is treated as a now-or-never decision.
b) Real options can be priced using the decision-tree analysis methods.
c) Real options generally have shorter maturities than financial options.
d) The option to abandon has a similar payoff to that of a financial call option.
e) None of the other answers is correct.
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