On the notion of embedded options, which of the following is/are true?
A)If virtually all projects have embedded options, ignoring options is likely to lead to serious undervaluation.
B)There are at least two possible outcomes for virtually every business idea.
C)Virtually every business has both the option to abandon and the option to expand.
D)All of the above.
E)Both B and C.

Question

Quizplus · Accepted Answer

All of the given statements are true. Virtually all projects have embedded options, and neglecting these options can lead to undervaluation. Additionally, every business idea has at least two potential outcomes, and virtually every business has the option to abandon or expand.

On the Notion of Embedded Options, Which of the Following