Financial Options Are Easier to Value Than Real Options for Each

Multiple Choice

Financial options are easier to value than real options for each of the following reasons EXCEPT

A) Exercise prices on financial options are contractually written on a single financial price that is readily observable in the financial market.
B) Markets for real assets have fewer imperfections than financial markets.
C) Real asset markets typically are less competitive than financial markets.
D) Each of the above is a reason why financial options are easier to value.
E) None of the above is a reason why financial options are easier to value.