Which of the following is considered a type of real options

Question

Quizplus · Accepted Answer

All of the options listed (expansion, abandonment, and flexibility) are considered types of real options. Real options refer to the potential opportunities that exist in a business that can be exercised at a later point in time based on certain conditions. Expansion options allow a firm to increase its operations in response to increased demand or other favorable conditions, abandonment options give a firm the ability to exit a project or business venture if it becomes unprofitable, and flexibility options provide a firm with the ability to make changes or adjustments to a project or business based on changing market conditions or new information.

Which of the Following Is Considered a Type of Real