Question 388 real option, option
A moped is a bicycle with pedals and a little motor that can be switched on to assist the rider. Mopeds offer the rider:
(a) An expansion option.
(b) An abandonment option.
(c) A timing (or delaying) option.
(d) A production (or switching) option.
(e) Lots of options to exercise if they're out-of-money and have no fuel.