Question
Which of the following will increase the value of a real (call) option? 1.None of these will increase the value of a real call option.
Which of the following will increase the value of a real (call) option?
1.None of these will increase the value of a real call option.
2.A decrease in the volatility of the underlying source of risk.
3.A decrease in the risk-free rate
4.Shortening the time in which a real option must be exercised.
5.An increase in the cost of obtaining the real option
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Handbook Of Asset And Liability Management Volume 2
Authors: S. A. Zenios, W. T. Ziemba
1st Edition
0444528024, 978-0444528025
