For real options,the current value of an underlying asset is equivalent to the current price of a stock.

Question

Quizplus · Accepted Answer

The current value of an underlying asset is not equivalent to the current price of a stock for real options. The current value of an underlying asset is the present value of the expected future cash flows from the asset, while the current price of a stock is the market price of the stock at a given point in time.

For Real Options,the Current Value of an Underlying Asset Is