If a firm has the option of investing in R&D,the cost of implementing the technology is the
A) exercise price.
B) nature of the option.
C) benefit of exercising the option.
D) the value of the option.

Question

Quizplus · Accepted Answer

The exercise price in an option context refers to the cost required to implement or exercise the option, which in this case is the cost of implementing the technology.

If a Firm Has the Option of Investing in R&D,the