Explain how having an abandonment option

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Reference no: EM131189913

1. Explain how having an abandonment option is like having a protective put.

2. True/False/it Depends: If you disregard the value of any real options in a project you are evaluating and you find that the NPV of the project is negative, you don’t need to value the real options because you know that the NPV will only get more negative once the real options are considered. Explain you answer below.

Reference no: EM131189913

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