Termination option
From ACT Wiki
1.
The valuable operational choice available to the owner of a project or of a business, to terminate all or part of it.
This is an example of a real option. Other examples of real options include the options to expand, contract or defer the given project or business.
Also known as an Abandonment option.
2.
Similar rights in a contract, either at the absolute discretion of the contracting party, or on the occurrence of a specified event.
See also
- Real option
- Real options valuation
- Expansion option
- Deferment option
- Contraction option
- Abandonment option
