Which of the Following Best Describes Under What Circumstances a "Real

Multiple Choice

Which of the following best describes under what circumstances a "real option" would exist?

A) Real options exist when managers have the opportunity, before a project has been implemented, to make operating changes in response to changed conditions that do not modify the project's cash flows.
B) Real options exist when managers have the opportunity, after a project has been implemented, to make operating changes in response to changed conditions that do not modify the project's cash flows.
C) Real options exist when managers have the opportunity, after a project has been implemented, to make operating changes in response to changed conditions that modify the project's cash flows.
D) Real options exist when managers have the opportunity, after a project has been implemented, to make financing changes in response to changed conditions that modify the project's cash flows.