Which of the following is a characteristic of a real option?
a. The call option on a stock exercised if some average of the prices of its components passes a critical level.
b. The right to postpone construction on the basis of net present value calculation.
c. The put option on a stock that need to be paid for (at a predetermined price) if they are actually exercised.
d. The right to sell an option at the strike price.
B
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The social discount rate used in cost-benefit analysis is equal to a weighted average of the Treasury Bill rate and the long-term government borrowing rate
a. true b. false
Proponents of a balanced budget amendment argue that the private advantages that each of us realizes from spending on our government programs are paid for almost entirely by other taxpayers
a. True b. False Indicate whether the statement is true or false