Which of the following best describes valuing land as a "real option"?
A) The land value reflects the fact that the developer can wait to decide whether to construct a building on the site.
B) The seller provides the investor with an option to purchase the land at a specific price before a certain date.
C) The land is valued at its most probable use.
D) The seller has an options to repurchase the land from the buyer before construction takes place.
Correct Answer:
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