Define the concept of real options. Describe an instance in your professional life (current employer or past employer) where a real option could have been useful.

According to our text, real options is defined as the application of options pricing theory to the evaluation of investment options in projects (Eun & Resnick, 2015). Real options are choices a companys management makes to expand, change, or curtail projects based on changing economic, technological,or market conditions. Factoring in real options affects the valuation of potential investments, although commonly used valuations fail to account for potential benefits provided by real options. Using real options value analysis (ROV), managers can estimate the opportunity cost of continuing or abandoning a project and make...