Abandonment option

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

Other resources

• Hidden treasure, The Treasurer, 2015