Real options logic is useful when corporations consider stock options as a way to finance entrepreneurial ventures.

Question

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Real options logic is applied in situations where decisions are made to invest in new ventures or other business activities. Many strategic decisions have the characteristic of containing a series of options. The phenomenon is called embedded options, a series of investments in which at each stage of the investment there is a go or no-go decision.

Real Options Logic Is Useful When Corporations Consider Stock Options