Question: One would need to __________ to determine a real option's current value. Group of answer choices A) compute the expected value of the option's future
One would need to __________ to determine a real option's current value.
Group of answer choices
A) compute the expected value of the option's future payoffs at the company's cost of capital
B) compute the expected value of the option's future payoffs using manager's probabilities
C) compute the discounted expected value of the option's future payoffs using the risk-neutral probabilities and the risk free rate
D) sum the option's future payoffs discounted at the risk free rate
E) none of the above
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