An example of a real option is
A)the option to make follow-on investments.
B)the option to abandon a project.
C)the option to wait before investing.
D)all of the options are correct.

Question

Quizplus · Accepted Answer

All of the options listed (option to make follow-on investments, option to abandon a project, option to wait before investing) are examples of real options in strategic decision making. Real options allow decision makers the flexibility to modify or adjust their choices based on new information or changing market conditions.

An Example of a Real Option Is