Real Option (Corporate Finance)

CFA Level II
#1

Dear All:

Please give some comments on Real option. I have read but still not clear about the concept.

Can we trade Real option like deriveative?

Thanks

#2

here they r not talking abt options, the derivative, rather, the options (as in various choices) that management has, to work on a particulr strategy. In real options, v r just trying to understand what wud be the outcome of selecting a particular option and under other options. Try to read thru with that perspective. Its a fairly simple topic.