What is the option in each of the following cases. Is it a call or a put?

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What is the option in each of the following cases. Is it a call or a put?
a. Western Telecom commits to production of digital switching equipment specifically designed for the European market. As a stand-alone venture, the project has a negative NPV, but it is justified by the need for a strong market position in the rapidly growing, and potentially very profitable, market.
b. Western Telecom vetoes a fully integrated automated production line for the new digital switches. It will rely on standard, less expensive equipment even though the automated
What is the option in each of the following cases.

Production line would be more efficient overall using the specialized equipment, according to a discounted cash-flow calculation.

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Fundamentals of Corporate Finance

ISBN: 978-0078034640

7th edition

Authors: Richard Brealey, Stewart Myers, Alan Marcus

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