An abandonment option provides its holder with the possibility (right, but not the obligation) to withdraw or pull out of an investment earlier than on the previously agreed end date.
Abandonment option is often bound with some specified conditions which must be met in order for the abandonment option to be exercised.
To abandon an option means to consciously choose not to sell or exercise it before it expires.
When an option is far out of the money and close to expiration, there is little chance that it will get in the money soon enough and its price in the options market will probably be very low (or [...]
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