Which of the following statements regarding real options is not true?

Multiple Choice

-Their consideration in capital budgeting analysis is designed to complement conventional DCF models.

-Similar to financial options, real options are traded on an open exchange.

-They refer to options on real assets (i.e., tangible and intangible property).

-They can never reduce the NPV of a proposed investment; they can only increase its NPV.

-They represent one way of handling risk and uncertainty in the capital budgeting process.