Question: Question 4 Given are the following statements: I. An increase in the maturity increases the value of the option to defer a project ( ceteris

Question 4
Given are the following statements:
I. An increase in the maturity increases the value of the option to defer a project (ceteris paribus)
II. An increase in the volatility decreases the value of the option to defer a project (ceteris paribus)
Assume that these changes do not affect the underlying value.

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