Jim owns a farm that he wants to sell. He learns that a highway will be built near the farm in the future, giving access to the farmland from a nearby city and thus making the land attractive to housing developers
Expecting the net present value (NPV) of the sale to be greater after the highway is built, he decides not to sell at this time. What real option is Jim taking?
A) option to delay
B) option to expand
C) option to abandon
D) option to switch
Answer: A
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Life insurance companies also manage private pension plans that may include guaranteed investment contracts (GICs).
a. true b. false
If you face hostile or difficult questions during a question-and-answer session,
A) respectfully ask their opinion on the matter. B) enlist the help of the audience to silence the questioner. C) respond honestly while keeping control of your emotions. D) stand your ground and respond to the questions aggressively. E) ignore anyone who asks such questions and change the subject.