Abandonment option
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The valuable operational choice available to the owner of a project or of a business, to abandon 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 a Termination option.
See also
- Contraction option
- Deferment option
- Expansion option
- Real option
- Real options valuation
- Termination option
