The longer the time to ________,the greater is the value of a real option.
A)market
B)profitability
C)exercise
D)maturity

Question

Quizplus · Accepted Answer

The longer the maturity or expiration date of a real option, the greater is its value, as it allows more flexibility and opportunities for the option holder to exercise their right to buy or sell the underlying asset. Therefore, the best choice is D) maturity.

The Longer the Time to ________,The Greater Is the Value