(b). Indicate whether the following statements are TRUE or FALSE (8 marks) (i). The option to make follow-on investment
Posted: Sat Nov 27, 2021 5:23 pm
statement (i) (ii) (iii) (iv)
(b). Indicate whether the following statements are TRUE or FALSE (8 marks) (i). The option to make follow-on investment is a put option. (ii). The option to expand is type of financial option. (iii). In real option analysis, required investment is usually considered as the exercise price. (iv). Black-Scholes model cannot be applied to evaluation a real option. True or False