What is the primary difference between a "financial option" and a "real option"?

Question

ObjectiveMcq · Accepted Answer

Financial options give investors the right to buy stocks, while real options relate to corporate investment decisions

ObjectiveMcq · Answer

Financial options are more expensive than real options

ObjectiveMcq · Answer

Real options can be traded on the open market, but financial options cannot

ObjectiveMcq · Answer

Real options involve borrowing and lending decisions, while financial options do not