What type of option exists when a decision maker has the opportunity to tailor a decision to information that will be received in the future?
A)Real option
B)Commitment option
C)Project option
D)Decision option
E)Future option

Question

Quizplus · Accepted Answer

A real option exists when a decision maker has the opportunity to tailor a decision to information that will be received in the future. Real options can include the ability to delay, expand, or abandon a project based on the new information received. This type of option is commonly used in investment decision-making, where the value of the investment can change over time based on new market conditions or technological advancements.

What Type of Option Exists When a Decision Maker Has