QUESTION 25 Koenig may have been willing to pay Hasperat more than the fair price of the option due to the savings of 1.5% on the mortgage financing. O True O False QUESTION 26 In discounting the pay-off value of the option to purchase the property: Nichols used the correct rate of 9.5%, which reflected the risk of the property iteslf. Nichols used an incorrect rate of 9.5% as the risk of an option to buy a property exceeds the risk of the property iteslf. QUESTION 27 In the CRE: Right of Acquisition Case, the value of the option to buy the property may ultimately differ from the price at which the parties are willing to transact given the lack of a secondary market and information asymmetry O True O False QUESTION 28 Opting to delay an investment - for example, until a firm learns more about potential demand or a market segment - is an example of O Timing Option Growth Option Staging Option O Exit Option QUESTION 29 If a firm has the option to abandon a project at various points in time, that is an example of Timing Option O Growth Option Staging Option O Exit Option QUESTION 25 Koenig may have been willing to pay Hasperat more than the fair price of the option due to the savings of 1.5% on the mortgage financing. O True O False QUESTION 26 In discounting the pay-off value of the option to purchase the property: Nichols used the correct rate of 9.5%, which reflected the risk of the property iteslf. Nichols used an incorrect rate of 9.5% as the risk of an option to buy a property exceeds the risk of the property iteslf. QUESTION 27 In the CRE: Right of Acquisition Case, the value of the option to buy the property may ultimately differ from the price at which the parties are willing to transact given the lack of a secondary market and information asymmetry O True O False QUESTION 28 Opting to delay an investment - for example, until a firm learns more about potential demand or a market segment - is an example of O Timing Option Growth Option Staging Option O Exit Option QUESTION 29 If a firm has the option to abandon a project at various points in time, that is an example of Timing Option O Growth Option Staging Option O Exit Option