Abandonment Option

A clause granting parties the option of withdrawing from the contract before the fulfillment or completion of all contractual duties. This clause adds value by giving the parties the ability to end the obligation if it is unprofitable.

A type of "real option".

Abandonment options are commonly used in bilateral agreements without a set time frame for expiry. Usually, one party may decide to exit from the relationship without penalty.

An abandonment option often appears in contracts between financial planners and their clients.

Investment dictionary. . 2012.

Look at other dictionaries:

  • Abandonment option — The option of terminating an investment earlier than originally planned. The New York Times Financial Glossary …   Financial and business terms

  • abandonment option — The option of terminating an investment earlier than originally planned. Bloomberg Financial Dictionary …   Financial and business terms

  • abandonment option — Fin the option of terminating an investment before the time that it is scheduled to end …   The ultimate business dictionary

  • Abandonment — 1. The act of surrendering a claim to, or interest in, a particular asset. 2. The permitted withdrawal from a forward contract that is made for the purchase of deliverable securities. 3. The act of allowing an option to expire unexercised. 1.… …   Investment dictionary

  • abandonment — controlling party giving up rights to property voluntarily. Bloomberg Financial Dictionary Allowing an option to expire unexercised. Also, withdrawal from a cancellable forward contract to purchase securities. Exchange Handbook Glossary * * *… …   Financial and business terms

  • abandonment — /ə bændənmənt/ noun an act of giving up voluntarily something that you own, such as an option or the right to a property …   Dictionary of banking and finance

  • Samson Option — For the 1991 book by Seymour Hersh, see The Samson Option (book) . The Samson Option is a term used to describe Israel’s alleged deterrence strategy of massive retaliation with nuclear weapons as a “last resort” against nations whose military… …   Wikipedia

  • Опцион отказа — (ABANDONMENT OPTION) Опцион, предполагающий прекращение инвестиций ранее изначально запланированного срока …   Финансы и биржа: словарь терминов

  • Биржевой рынок — (Stock market) Биржевой рынок это рынок определенных финансовых инструментов имеющий регламентированные правила для осуществления биржевых сделок Биржевой рынок, виды биржевых рынков описание и общие понятия Содержание >>>>>>>>>> …   Энциклопедия инвестора

  • Опцион, определение и виды — Определения. Изучить опционные стратегии можно здесь. Опционы – это контракты которые дают право, но не обязательство произвести куплю или продажу определенного актива по определенной цене в определенные сроки.  Права на саму покупку или продажу… …   Финансовый словарь

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.