Contraction option

Options - real options.

The valuable operational choice available to the owner of a project or of a business, to contract it.

This is an example of a real option. Other examples of real options include the options to expand, defer or abandon the given project or business.

See also

• Abandonment option
• Deferment option
• Expansion option
• Real option
• Real options valuation
• Termination option

Other resources

• Hidden treasure, The Treasurer, 2015