optionality

The value of additional optional investment opportunities available only after having made an initial investment.

Noun

  1. The value of additional optional investment opportunities available only after having made an initial investment.
    • The short-term payoff for this is modest, but the optionality value is enormous.
  2. Quality or state in which choice or discretion is allowed.
    • Some offices do not follow the corporate procedure, due to a culture of optionality.

Origin

Etymology tree English optional Proto-Indo-European *-teh₂ Proto-Indo-European *-ts Proto-Indo-European *-teh₂ts Latin -itāsder. Old French -itebor. Middle English -ite English -ity English optionality From optional + -ity.

Forms

optionalities

Related

option optional call put