Some of the most common applications of real options are wit…

Some of the most common applications of real options are with property and insurance. A real estate option grants the holder the right to buy or sell a piece of property at an established price sometime in the future. If the price of the property goes ________, the owner of the option is likely to buy it. If the market value of the property ________ the strike price, the option holder is unlikely to execute the purchase.

In addition to traditional institutional investors, a growin…

In addition to traditional institutional investors, a growing set of activist investors aggressively pressure firm managers for major changes. These activist investors include individual investors, such as ________, and activist investor funds, such as ________.