Why should I choose AnalystNotes?
AnalystNotes specializes in helping candidates pass. Period.
Basic Question 3 of 6
Molecular Sciences has a patent for a promising new chemical product, but it's worried about the size of the market opportunity, and it's unsure whether the manufacturing process will meet government regulations regarding toxic chemicals. If the company does begin an effort to commercialize the product, though, it will have the option to give up the project if demand doesn't materialize or if the environmental liability appears too large. This is an example of: A. Timing options.
B. Abandonment options.
C. Fundamental options.
User Contributed Comments 0
You need to log in first to add your comment.
I am using your study notes and I know of at least 5 other friends of mine who used it and passed the exam last Dec. Keep up your great work!
Barnes
Learning Outcome Statements
describe types of real options relevant to capital investments
CFA® 2024 Level I Curriculum, Volume 2, Module 5.