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A good example of a real option is the lottery. For example, there are 1 million lottery tickets with a 1st prize of 500 million won. The expected value of winning this lottery is 500 won (500 million won) × probability (1 in a million). If you sell this lottery ticket for 1,000 won, you are making an 'irrational decision' in which the buyer loses 500 won. Still, many are willing to buy lottery tickets. Why? The answer to that question is a real option.