Which of the following is not true about real options?
A) All investment decisions contain identifiable and measurable real options.
B) Under certain circumstances, management may be able to delay their initial investment in a project or M&A.
C) Real options may be valued as the expected value of various alternative cash flow projections.
D) Real options can be valued using the Black-Sholes method.
E) None of the above

Question

Quizplus · Accepted Answer

Not all investment decisions contain identifiable and measurable real options. Some investments may be straightforward with no real options available.

Which of the Following Is Not True About Real Options