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Referring to the case study Options in Commorcial Real Eatate, the option strike price was $24,124,227. True False QUESTION 28 Referencing the case study Options in Commercial Real Estate, the correct discount rate for the purchase option was: Loss than 9.5% Equal to 9.5% Greater than 9.5% None of the above QUESTION 29 Referencing the case study Options in Commerical Real Estate, the actual value of the fiurchase option was approximately: $100,000$250,000$500,000$1,000,000 QUESTION 30 Refering to the case study Optoins in Commercial Real Estate, Koenig had no economic reason to pay more than the modeled value of the option. True False Matching question: Match the Real Option with its definition. Timing Option A. Option to abandon Growth Option B. Option to expand or access a wider notwork Exit Option C. Intelligence in one area that can be leveraged elsewhere in a firm Operating Option D. Option to delay or accelerate an investment Learning Options E. Option to spin up or spin down operations QUESTION 25 Referring to the case study Options in Commercial Real Estate, Koenig mortgage rate on the K. suilding would have been lower in the absence of the option. True False: QUESTION 26 Multiple Answer Question: Referecing the case study Options in Commerical Real Estate, which of the following represented flaws in Bal Nichois analysis: Failure to consider all 4 options in the lease agreement. Failure to consider the link between cap rates and the discount rate Failure to calculate the terminal value of the property Failure to recognize the volatility of property value and range of outcomes QUESTION 27 Referring to the case study Options in Commercial Real Estate, the option strike price was \$24,124,227. True False With regard to interest rate models: Arbitrage Free Models A. Analysis begins with observed market prices for financial instruments Equilibrium Models known as benchmark instruments from which the term structure is assumod Mean Reversion B. Dynamics of the term structure are developed using fundamental Speed of Adjustment economic variables that are assumed to affect the interest rate process C. An assumed long run stable mean value that the short torm rate gravitates to over time. D. Velocity with which the short rate converges to the long run stable moan value QUESTION 22 In Real Options, when the complexity of a decision is high and the distance from the financial markets is far, the BSM model is most frequently used. True False QUESTION 23 Much of the challenge in Real Options analysis lies in identifying the options, partitioning them from one another and determining which are most valueable. True Falso

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