Question: Whats the difference between a financial option and a real option? What are some specific types of real options? Do real options just occur, or

What’s the difference between a financial option and a real option? What are some specific types of real options? Do real options just occur, or can they be “created”?

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Financial options deal with securities like stocks and debt instruments whereas real options deal with physical assets like capital budgeting projects ... View full answer

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