Real options

Projects are also often embedded with different options that can help making decisions under uncertainty There are techniques used to evaluate these

embedded options which are called real options. The models used to value these options are based on the type of the real options available for the

project.

True or False: A real option embedded in a capatal project gives the investing firm the right but not the obligation to berf, sell, or transfer an asset ar a

set price duning a speofied period of time.

True

False