Example of a flexibility option

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Reference no: EM13811382

Which one of the following is an example of a "flexibility" option?

a. a company has an option to invest in a project today or to wait a year.

b. a company has an option to close down an operation if it turns out to be unprofitable.

c. a company agrees to pay more to build a plant in order to be able to change the plant's input and/or outputs at a later date if conditions change

d. a company invests in a project today to gain knowledge that may enable it to expand into different markets at a later date

e. a company invests in a jet aircraft so that it's CEO, who must travel frequently, can arrive for distant meetings feeling less tired than if he had to fly commercial

Reference no: EM13811382

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