Options have positive value if the expected cash flow from making the investment is more than the value of maintaining the option.

Name: Options have positive value if the expected cash flow from making the investment is more than the value of maintaining the option.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Options have positive value when the potential benefits of exercising the option exceed the costs, not just when expected cash flows from an investment are higher than maintaining the option.

Options Have Positive Value If the Expected Cash Flow from Making