Termination option

1. Real options.

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. Law - contract.

Similar rights in a contract, either at the absolute discretion of the contracting party, or on the occurrence of a specified event.

See also

• Abandonment option
• Contract
• Contraction option
• Deferment option
• Expansion option
• Law
• Real option
• Real options valuation

Other resources

• Hidden treasure, The Treasurer, 2015