optionality

noun — 2 senses

optionality

noun

Etymology From optional + -ity.

1

Business, Finance 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.
Related terms
option, optional, call, put

Entry derived from the Wiktionary, under licence CC BY-SA 4.0 — list of authors.