Some of the most common applications of real options are wit…

Some of the most common applications of real options are with property and insurance. A real estate option grants the holder the right to buy or sell a piece of property at an established price sometime in the future. If the price of the property goes ________, the owner of the option is likely to buy it. If the market value of the property ________ the strike price, the option holder is unlikely to execute the purchase.

A report issued by the World Trade Organization described th…

A report issued by the World Trade Organization described the production of a particular U.S. car. The study showed that 30 percent of the car value goes to Korea for assembly, 17.5 percent to Japan for components and advanced technology, 7.5 percent to Germany for design, 4 percent to Taiwan and Singapore for minor parts, 2.5 percent to U.K. for advertising and marketing services, and 1.5 percent to Ireland and Barbados for data processing. This is an example of