Real Option Valuation Requires a Thorough Knowledge of fiNancial Option

Multiple Choice

Real option valuation requires a thorough knowledge of financial option valuation.Consider the following two statements:
(i) Most real option problems require a European style option valuation technique.
(ii) The most important difference between real and financial options is the fact that real options are
Never exercised.

A) (i) is correct, (ii) is incorrect.
B) (i) is incorrect, (ii) is correct.
C) Both (i) and (ii) are correct.
D) Both (i) and (ii) are incorrect.
E) None of the above.