Termination option

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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


Other resources