The lower the ________ price,the greater is the value of a real option.
A)stock
B)operational
C)exercise
D)market

Question

Quizplus · Accepted Answer

The exercise price is the price at which an option can be exercised or the price at which the underlying asset can be bought or sold. The lower the exercise price, the more valuable the option as it allows the holder to potentially buy or sell the underlying asset at a lower price, thus increasing potential profits. Therefore, the lower the exercise price, the greater the value of the real option.

The Lower the ________ Price,the Greater Is the Value of a Real