Increase the value of a real option

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Reference no: EM13323082

Which of the following will NOT increase the value of a real option?

a. Lengthening the time in which a real option must be exercised.

b. An increase in the volatility of the underlying source of risk.

c. An increase in the risk-free rate.

d. An increase in the cost of obtaining the real option.

e. A decrease in the probability that a competitor will enter the market of the project in question.

Reference no: EM13323082

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