Which of the following are examples of real options?
Which of the following are examples of real options?
a. A basketball team owner delays signing a star free agent to a one year contract, preferring to wait and see if his team is in contention for a championship.
b. A hockey team owner delays building a new stadium because interest rates are high and may soon come down.
c. A student delays studying for a final exam because she expects to soon receive a job offer that would make her grade point average moot.
d. Blockbuster Video delays entering the DVD rental market