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Basic Question 4 of 6

If a firm has the option to abandon a project during its life, this amounts to a ______ option on the remaining cash flows associated with the project.

A. call
B. put

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I am happy to say that I passed! Your study notes certainly helped prepare me for what was the most difficult exam I had ever taken.
Andrea Schildbach

Andrea Schildbach

Learning Outcome Statements

describe types of real options relevant to capital investments

CFA® 2025 Level I Curriculum, Volume 2, Module 5.