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What real option embedded in this contract is best described

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Question - Marsh Property Management is considering the construction of a new development of townhouses in St Kilda. The site for the new development is currently occupied by an office building owned by the city. The project's profitability will depend largely on the population increase in St Kilda over the next several years. Rather than buy the site, Marsh has entered into an agreement with the city to pay $200,000 for the right to purchase the site for $10 million two years from now. What the real option embedded in this contract is best described?

Reference no: EM133068111

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