Exam 13: Strategic Flexibility and Real Options Analysis

The Black-Scholes method assumes that there ____ of uncertainty.

Only a few techniques are used to value real options.

The primary focus of the real options analysis perspective is centered on operational control.

According to the text,____ was an early adoptor of real options analysis.

Discuss real options and the types that exist.

In the electrical and electronics equipment industry,on average,____ percent of firm value is due to growth options.

Cumulative volatility is a variable derived by combining the volatility and cost of exercise parameters.

The Black-Scholes option pricing formula for a(n) ____ financial call option is often used to value real options.

In many instances,the same economic factors that influence the value of the underlying asset also affect the:

The value of the original real option is affected by follow-on options when ____ options are involved.

It can be argued that both ____ and ____ blossomed in parallel after World War I and that both are inherently interested in the allocation of a firm's resources to achieve value for shareholders.

Real options are 'real' because the immediate underlying asset is a:

Which of the following is NOT a type of real option?

What is strategic flexibility,and how do firms utilize it?

The degree to which growth options matter within industries:

Real options and the analysis of these investments are important for all of the following reasons EXCEPT:

Under typical application of using discounted cash flow analysis to calculate present values,estimated cash flows are:

Increases in the risk-free rate will ____ the exercise price.

The degree to which growth options matter within industries varies greatly.

The value of a firm can be expressed using the formula V = V_AIP + V_GO.